Bank Credit grows at 18.1% on year

Reserve Bank of India or RBI reported today that non-food bank credit expanded by 19.1 per cent year-on-year as of the fortnight ended September 30, 2026, in contrast to 11.2 per cent during the corresponding period of the prior year (i.e., October 03, 2025). Credit extended to agriculture and related activities demonstrated a year-on-year growth of 19.5 per cent, compared with 8.9 per cent in the year-ago period.

Credit extension to industry demonstrated a year-on-year expansion of 19.5 per cent (7.7 per cent in the corresponding fortnight of last year). Credit to ‘large’ and ‘medium’ industries advanced at a faster rate, while ‘micro and small’ industries registered consistent growth. Within key sectors, credit to ‘infrastructure’, ‘basic metal and metal products’, ‘all engineering’, ‘chemical and chemical products’, ‘food processing’ and ‘textiles’ evidenced robust year-on-year growth.

The services sector credit witnessed a year-on-year expansion of 28.3 per cent (9.9 per cent in the corresponding fortnight of the previous year), propelled by robust advances in areas including ‘non-banking financial companies’ (NBFCs), ‘trade’, ‘commercial real estate’, ‘transport operators’ and ‘professional services’.

The Reserve Bank of India indicated that credit extended to the personal loan category demonstrated a year-on-year expansion of 17.3 per cent, in contrast to 11.5 per cent a year ago. Credit expansion in areas like ‘housing’ and ‘vehicle loans’ exhibited ongoing strength, while ‘advances against fixed deposits’ saw an acceleration. Growth in ‘loans against gold jewellery’ and ‘education’ moderated when compared to the prior year, although it remained robust.