Banking - Bank credit grew 10.42% yoy in Mar ‘26

Banking - Bank credit grew 10.42% yoy in Mar ‘26 The government has reaffirmed its commitment to strengthening the financial sector to support inclusive and sustainable economic growth. Banking sector credit growth reaching 10.42% yoy as of Mar ‘26. Corporate credit grew by 14.29% yoy as the main driver, followed by consumer credit at 13.97% yoy and commercial credit at 11.11% yoy. Meanwhile, MSME credit recorded a limited contraction of 3.57% yoy. (Source : Idn Financials) Comment : We are so glad that the banking sector loan double digit growth continue its trajectory amid the prolonged uncertainty. The big engine that still running hot is confirming the business owner confidence remain intact. Our main focus still on MSME segment and several latest government program that need more attention and uninterrupted support, in our view. On consumer segment, spending confidence will play vital role. The move toward USD earners business financing and labour-intensive sectors in the upcoming quarters is a strategic hedge against the current contraction in smaller-scale financing. Maintain our Overweight stance for the sector, with stock pecking order BMRI > BBCA > BRIS.