As the Union Budget 2026 draws closer, India’s banking and financial services sector is sharpening its wishlist. With credit growth moderating, hiring pressures mounting and regulatory frictions persisting, lenders and financial institutions are looking to the government for targeted policy support that can steady momentum and unlock fresh growth. Union Finance Minister Nirmala Sitharaman is all set to present the Budget 2026 on February 1. According to Balasubramanian A, senior vice president at TeamLease Services, the BFSI sector played an important role in expanding formal employment during 2025, largely led by large banks and fast-growing fintech platforms. Lending growth stayed in the mid-to-high single digits through the year, but risks are beginning to surface beneath the headline numbers, according to a report from The Times of India. Asset Quality And Hiring Trends Under ScrutinyBalasubramanian pointed to emerging stress pockets in loan books, particularly in unsecured personal loans and auto loans, where non-performing assets have started to rise.
