Private Sector Credit Surges 75% in Feb Recovery 📈

• Overall Growth: Private sector credit stock rose 26.4% YoY to reach Rs. 10.44 Tn by end-February 2026. This marks a significant recovery from the 11-month low recorded in January. • New Borrowings: Fresh credit jumped 74.7% MoM to Rs. 144.3 Bn in February, up from Rs. 82.6 Bn in January. Despite the rebound, this remains the fourth lowest monthly figure in the past year following disruptions from Cyclone Ditwah. • Sector Breakdown: • Domestic Banks: New lending reached Rs. 142.6 Bn; total outstanding rose 28.9% YoY to Rs. 9.88 Tn. • Overseas Units: Outstanding debt declined 5.5% YoY to Rs. 557.7 Bn. • Public Corporations: New loans hit Rs. 14.4 Bn in February, though total outstanding debt fell 26.6% YoY. • Government Credit: Net credit to the Government fell marginally by 1.5% YoY to Rs. 8.14 Tn. CBSL exposure rose 2.1%, while domestic bank lending to the state dropped 2.4%. • Economic Outlook: The CBSL expects interest rates to continue their downward adjustment. Despite global fuel shocks and a 30% hike in prices due to Middle East tensions, the Governor noted no immediate need for SME credit relief as non-performing loans remains stable.