New Delhi: Scheduled Commercial Banks (SCBs) recorded a robust year-on-year non-food credit growth of 15.9 per cent in the financial year 2025–26, reflecting sustained economic activity and strong demand for credit across sectors.
According to official data released on Tuesday, total outstanding credit reached ₹212.9 lakh crore at the end of March 2026, marking an increase of ₹29.2 lakh crore compared to the previous year.
The growth comes amid a supportive low-interest rate environment and continued government-led capital expenditure, which has encouraged private investment and strengthened confidence among borrowers.
Sector-wise, credit expansion remained broad-based, led by the services sector, followed by personal loans, agriculture and allied activities, and industry.
Credit to agriculture and allied sectors grew by 15.7 per cent during FY26, up from 10.4 per cent in the previous year, supported by sustained rural demand and improved access to formal credit.
In the industrial sector, credit growth nearly doubled to 15 per cent from 8.2 per cent a year ago, driven largely by strong lending to micro, small and medium enterprises (MSMEs). Micro and small industries recorded a sharp rise of 33.1 per cent in credit growth, while medium industries also saw notable expansion.
The services sector registered the highest growth at 19 per cent, compared to 12 per cent in the previous year. The increase was led by demand from segments such as non-banking financial companies (NBFCs), trade, and commercial real estate.
Personal loans also witnessed steady growth of 16.2 per cent, up from 11.7 per cent last year, with strong demand for vehicle loans and loans against gold jewellery, alongside stable growth in housing credit.
The data indicates a resilient domestic economic environment, with rising credit uptake by both businesses and individuals supporting investment, consumption, and job creation.
Despite global uncertainties, the Indian economy continues to demonstrate resilience, supported by a stable and well-capitalised banking sector, low levels of stressed assets, and sustained profitability.
(DD News)