The report noted that several banks reporting first-quarter FY27 results posted strong loan growth, with management indicating no signs of asset quality stress across segments and expecting credit growth to remain robust. HSBC expects loan growth to moderate in the second half of FY27 due to adverse base effects, with any slowdown in corporate lending likely to weigh on overall credit growth. "We revise our FY27e loan growth to 14% y-o-y (from 12% y-o-y) as we expect growth to moderate in 2HFY27 from the current c18% y-o-y due to base effects and expectation of a slowdown in corporate loan growth," HSBC noted. In June 2026, India's non-food credit growth surged to 18.3 per cent year-on-year and 2.0 per cent month-on-month, up from 17.3 per cent year-on-year and 1.2 per cent month-on-month in May. MSME lending also rose 20.5 per cent and 2.1 per cent and corporate credit expanded 20.4 per cent and 2.5 per cent.