The chairman said the institution’s mortgage loan portfolio crossed ?9 lakh crore last month and expressed confidence that momentum in the retail, agriculture, and MSME (RAM) segment will support overall credit growth of around 14% during the current fiscal year. The RAM segment, which constitutes about 67% of the total loan book, surpassed the ?25 lakh crore mark in September.

With improving economic conditions, the credit growth target for the current financial year has been revised upward from 12% to 14%. The chairman noted that MSME lending is growing at 17–18%, while agriculture and retail are expanding around 14%. He also highlighted strong growth in gold loans and projected double-digit growth for unsecured personal credit products.

Corporate lending, which had seen a period of slower activity, recorded 7.1% growth in the second quarter. Guidance for corporate credit now stands in the lower double-digit range, making the overall target of 12–14% credit expansion achievable.

The recent decision by the central bank to reduce the key policy rate by 25 basis points is expected to lower borrowing costs and stimulate demand for fresh credit. The benchmark rate was cut to 5.25%, maintaining a neutral stance and leaving scope for further reductions. The move followed a six-month pause and aims to support economic growth, which reached a six-quarter high of 8.2% in Q2 of FY26.

The chairman also indicated that the institution is unlikely to require equity infusion to sustain credit expansion while maintaining a capital adequacy ratio of 15% over the next 5–6 years. With current profitability levels, the institution may not need additional capital raising—particularly for core equity—within that period.

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