The Indian banking sector is experiencing a notable transformation in its credit landscape, with credit growth stabilizing and secured retail and MSME lending emerging as key drivers. Public sector banks (PSUs) have regained dominance in the MSME sector, while private banks maintain a selective approach.

MSME Credit Landscape Sees Major Shift

Over the past 6-9 months, PSU banks have successfully re-established their dominance in MSME credit. This resurgence is attributed to several competitive advantages:

This execution-led push is enabling PSU banks to gain substantial market share, particularly in working capital and smaller business loans. Private banks, in contrast, are maintaining a more selective approach, preferring hybrid structures that combine partial guarantees with collateral.

Unsecured Business Lending Undergoes Reset

Unsecured business lending is experiencing a clear recalibration across the sector. Growth has moderated significantly to 10-20% from the previously elevated levels of 30-40% seen in prior years, despite a sharp correction in pricing structures.

Stress pockets remain visible in specific segments, particularly in agri-linked commodity businesses and among FMCG distributors facing elongated working capital cycles.

Housing Sector Shows Continued Resilience

Housing and real estate lending continues to demonstrate resilience despite some cooling from peak growth levels. Disbursement momentum has improved, primarily led by large developers and redevelopment projects.

PSU banks are regaining relevance in the home loan segment, aided by competitive pricing, faster processing capabilities, and normalized distribution commissions. This has driven particular traction in Tier-2 and Tier-3 markets.

Retail Unsecured Products Show Stabilization Signs

Early signs of stabilization are emerging in retail unsecured products. The personal loan and credit card segments are moving past peak stress periods, with early delinquencies stabilizing, though overall delinquency levels remain elevated compared to historical norms.

Stock Recommendations and Outlook

ICICI Bank has received a Buy rating with a target price of ₹1,700, supported by its structural strengths in disciplined risk management, prudent underwriting, and well-diversified loan book.

AU Small Finance Bank has also earned a Buy rating with a target of ₹1,100, supported by margin expansion and controlled credit costs.

Looking ahead, the credit cycle appears to be settling into a more sustainable, execution-driven phase. The medium-term opportunity favors lenders with strong execution capabilities, diversified growth levers, and consistent asset quality as the sector balances growth ambitions with profitability and risk discipline.

ICICI Bank has officially notified stock exchanges about its upcoming board meeting scheduled to approve the third quarter financial results for FY2026. The announcement comes as part of the bank's regulatory compliance obligations under SEBI guidelines.

Board Meeting Details

The bank's Board of Directors will convene on Saturday, January 17, 2026, to deliberate on key financial matters. The primary agenda includes consideration and approval of unaudited financial results covering specific reporting periods.

Trading Window Restrictions

In accordance with regulatory requirements, ICICI Bank has implemented trading restrictions for designated individuals. The bank's notice emphasizes compliance with insider trading prevention measures during the results announcement period.

Regulatory Compliance

The announcement has been made pursuant to applicable provisions of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Additionally, the trading window closure aligns with SEBI (Prohibition of Insider Trading) Regulations, 2015, read with ICICI Bank's internal Code on Prohibition of Insider Trading.

The bank has communicated this information to multiple stock exchanges where its securities are listed, including BSE Limited and National Stock Exchange of India Limited. International exchanges including New York Stock Exchange, Singapore Stock Exchange, Japan Securities Dealers Association, and SIX Swiss Exchange have also been notified.

Communication and Documentation

The formal notice, dated December 22, 2025, has been signed by Prachiti D. Lalingkar, Company Secretary of ICICI Bank Limited. The communication ensures transparency and adherence to disclosure requirements across all relevant regulatory jurisdictions where the bank maintains listings.