I bought this plant almost two weeks ago and carefully repotted it into a terracotta pot following some guidance online as to not damage the roots. I kept the original soil mixed in with some sphagnum peat moss and a good amount of perlite.

It has since produced an entire new leaf, but the other leaves are very droopy.

It has been watered two-three times since I purchased it but only when the top inch has dried.

It is placed next to a south facing window so it gets a little direct sun in the morning but predominately sits in bright indirect light and receives a lot of humidity from frequent misting.

Are the drooping leaves normal for banana plants or am I doing something wrong? Any advice is appreciated!

Bananas are kind of water hogs. I have some that live in a bona fide bog. And the rest get water from either train or the hose every day. They like to be growing in full unadulterated sun and have really good air movement, so, they don;t actually make the best houseplants. But your soil does look dry.

I agree with Gina and would also suggest a larger container, significantly larger actually. More soil would provide more moisture and nutrition for the roots. Bananas are very hungry plants.