Scheduled Commercial Banks (SCBs) recorded a robust year-on-year (YoY) non-food credit growth of 15.9 per cent in FY25-26, indicating strong economic activity and persistent demand for loans across industries.
According to the data released by Ministry of Finance, the total credit outstanding in Mar-2026 reached Rs 212.9 lakh crore, Rs 29.2 lakh crore higher than the previous year.
The credit growth marked marking a significant 497 basis points (bps) increase in growth from the corresponding period in 2025 (10.9 per cent).
The credit growth in FY25-26 has been broad-based led by services sector, followed by personal loan segment, agriculture and allied activities, and industry.
In terms of sector wise, the credit growth in the agriculture and allied sector accelerated to 15.7 per cent, 528 bps higher than 10.4 per cent growth registered previous year, reflecting reinforced support for the farm sector.
Sustained rural demand and formalisation of rural credit has been attributing to the positive momentum in primary sector credit offtake in FY225-26.
For industrial sector, the credit deployment to the industrial sector expanded at almost double rate to 15.0 per cent, vis-a-vis 8.2 per cent growth registered last year. With a 33.1 per cent YoY growth, ‘micro and small’ industries registered a 3.7 times higher credit growth in FY25-26.
Similar positive trends are witnessed for medium-scale industries where credit expanded by 21.7 per cent YoY. Key drivers of industrial credit are: infrastructure, basic metal and metal products, chemicals and chemical products, petroleum, coal products and nuclear fuels etc.
Meanwhile, services sector credit, that contributes 28 per cent to the overall credit, recorded a robust expansion of 19.0 per cent YoY (compared to 12.0 per cent recorded during the same period last year).
The surge was primarily driven by high demand from segments like non-banking financial companies, trade and commercial real estate.
Furthermore, the personal loan segment with 33 per cent share in overall credit, expanded by 16.2 per cent in FY25-26, 455 bps higher than credit growth (11.7 per cent) registered a year ago. Growth remained steady in the housing segment, while vehicle loans and loans against gold jewellery continued to show strong momentum.
