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14-Jan-2026

Banking Sector Poised for Growth Amid Supportive Policy and Strong Domestic Momentum

India’s banking industry is set to benefit from robust credit demand, easing inflation, and sustained economic expansion, though global uncertainties and lower interest rates may pressure margins in the near term.


'Bank of Maharashtra has released an investor presentation that looks into the financial landscape of banking domain.

The GDP growth forecast for FY 2025-26 has been revised upward to 7.3% from 6.8%, indicating strong economic momentum as mentioned by RBI. It has reduced the Repo Rate by 25 bps to 5.25%, maintaining its neutral stance. With this, a cumulative reduction of 125 bps has been done in 2025.

India`s GST collections rose 6.1% YoY in December 2025 to Rs 1.75 lakh crore. GST collections for the period April-December FY26 rose by 8.6% to Rs 16.5 lakh crore. Inflation forecast for FY 2025-26 lowered to 2% from 2.6%, due to easing food prices and improved supply conditions. As on 2nd January 2026, India’s foreign exchange reserves stood at US$ 686.8 billion, sufficient to cover more than 11 months of merchandise imports. Exports increased by 5.43% to USD 562.13 billion in April-November 2025 in comparison to April-November 2024.

The key challenges are that U.S. t...



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