Bank credit growth was strong across all major sectors in July 2026. Non-food credit grew by 19.1%, while credit to agriculture, industry, services and personal loans recorded growth of 17.0%, 20.0%, 22.9% and 16.2%, respectively.
The RBI has released data on how bank credit was distributed across different sectors in July 2026. The data was collected from 41 selected Scheduled Commercial Banks (SCBs), which together account for around 95% of the total non-food credit given by all SCBs.
Non-food bank credit grew by 19.1% year-on-year as of the fortnight ended July 31, 2026. This was much higher than the 9.9% growth recorded during the same period a year earlier.
Agriculture credit grows 17%
Bank credit to agriculture and allied activities grew by 17.0% year-on-year in July 2026. This was significantly higher than the 7.3% growth recorded during the corresponding period last year.
Industry credit grows 20%
Credit to the industrial sector grew by 20.0% year-on-year, compared with 6.5% a year ago.
Credit growth in large and medium industries increased at a faster pace, while credit to micro and small industries continued to grow steadily.
Among the major industries, sectors such as infrastructure, basic metals and metal products, engineering, chemicals and chemical products, petroleum and coal products, nuclear fuels, and textiles recorded strong year-on-year credit growth.
Services sector sees highest growth
Bank credit to the services sector grew by 22.9% year-on-year in July 2026, compared with 10.2% during the corresponding period of the previous year.
The growth was supported by faster credit growth in segments such as non-banking financial companies (NBFCs), trade and commercial real estate.
Personal loans grow 16.2%
Credit under the personal loans category grew by 16.2% year-on-year in July 2026, compared with 11.9% a year ago.
Housing loans and vehicle loans continued to record double-digit growth. However, growth in credit card outstanding and loans against gold jewellery slowed down.
