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Bank lending to industry recorded a strong year-on-year growth of 19.2 per cent in June 2026, supported by higher credit flow to large companies as well as MSMEs, according to the Reserve Bank of India (RBI). Overall non-food bank credit also saw healthy growth, while lending to agriculture, services and personal loans remained strong. Commercial real estate emerged as one of the key contributors to the expansion in services sector credit. The data reflects continued demand for financing across productive sectors of the economy, supported by broad-based lending across industries.
Bank credit to the industrial sector recorded a year-on-year growth of 19.2 per cent in June 2026, up sharply from 6.3 per cent in the corresponding period last year, according to sectoral deployment data released by the Reserve Bank of India (RBI).
The RBI said non-food bank credit grew by 18.3 per cent as of the fortnight ended June 30, 2026, compared with 9.3 per cent during the corresponding fortnight of the previous year. The data is based on information collected from 41 selected scheduled commercial banks, which account for nearly 95 per cent of the country's total non-food bank credit.
Credit to agriculture and allied activities also maintained healthy momentum, registering a year-on-year growth of 16.8 per cent against 6.8 per cent in the corresponding period a year earlier.
The central bank stated that lending to the industrial sector expanded across all major categories, including micro and small enterprises, medium enterprises and large industries, indicating broad-based growth rather than concentration in a few segments.
Among the major industries, lending recorded strong growth in infrastructure, engineering, food processing, textiles, construction, basic metals and metal products, petroleum, coal products and nuclear fuels, and chemicals and chemical products. However, credit growth to the rubber and plastic products segment, as well as the wood and wood products segment, remained relatively subdued.
The services sector continued to be another major driver of credit expansion. Loans to the sector grew 21.4 per cent year-on-year, compared with 8.8 per cent in the same period last year. The RBI attributed this faster growth to increased lending to non-banking financial companies (NBFCs), commercial real estate and trade.
The data is significant for the real estate sector as commercial real estate remained one of the key segments supporting higher services sector credit growth. Increased institutional lending to commercial assets comes amid continued demand for office spaces, warehousing, retail developments and mixed-use projects in several major cities.
Personal loans also recorded stronger growth, rising 15.8 per cent year-on-year compared with 11.7 per cent a year earlier. Within the segment, vehicle loans and housing loans continued to register double-digit growth, while the pace of growth in outstanding credit card dues moderated.
The latest RBI figures indicate that bank lending remained broad-based across key sectors during June, with industry, services, agriculture and retail credit all contributing to the overall expansion in non-food bank credit.
Source PTI
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