In a testament to India’s accelerating economic engine, scheduled commercial banks posted a stellar 15.9% credit growth for FY 2025-26, as announced by the government on Tuesday. This robust performance highlights surging loan demands amid vibrant business activities.
Finance Ministry data shows non-food credit mirroring this at 15.9%, a 497 basis point improvement over FY25’s 10.9%. Total outstanding loans reached ₹212.9 lakh crore by March end, an addition of ₹29.2 lakh crore from the prior year.
Diverse sectors fueled this upswing: services topped with substantial contributions, trailed by personal loans, farm credit, and manufacturing. Agricultural lending accelerated to 15.7%, up 528 basis points, bolstered by persistent rural needs and formal credit channels.
Industrial credit nearly doubled to 15.0%, with micro-small enterprises exploding at 33.1%—a 3.7-fold increase. Medium firms grew 21.7%, powered by infrastructure and heavy industries like metals, chemicals, and energy.
The services sector, 28% of the pie, surged 19.0% from 12.0%, driven by NBFCs, trading, and realty. Personal loans, at 33% share, rose 16.2% versus 11.7%, with housing stable and auto-gold loans thriving.
This widespread credit expansion paints a picture of financial health, setting the stage for deeper economic penetration and growth in the coming quarters.
