The twenty-first round of the FICCI-IBA Bankers' Survey, conducted from January to February 2026, reveals a broadly positive outlook for credit growth in India's banking sector. With participation from 24 banks, including Public Sector Banks, Private Sector Banks, and Foreign Banks, the survey highlights improved asset quality and strengthening capital buffers as key factors supporting this optimism. Respondents anticipate continued momentum in non-food credit, particularly from the retail and SME segments, while Public Sector Banks express strong confidence in corporate lending due to improved balance sheets and capital positions. The survey indicates that overall credit expansion will remain positive, with expectations for stable monetary policy in the coming months. However, industrial credit growth is projected to be more measured, reflecting a gradual recovery. Working capital demand is expected to be influenced by trade cycles, with sectors like textiles, automobiles, and pharmaceuticals leading the charge in industrial borrowing.