Bank credit growth (year-on-year) increased to 16.5 per cent at the end of June 2026, compared to 9.9 per cent a year ago. Credit growth increased across all population groups and bank groups.
Bank borrowings by the private corporate sector increased to 21.1 per cent at the end of June 2026, compared to 7.9 per cent in the previous year. Credit to the public sector and household sector also recorded strong growth of 14.6 per cent and 15.2 per cent, respectively, in June 2026.
Bank credit to female individual borrowers grew by 19.7 per cent in June 2026, compared to 12.9 per cent in June 2025.
Term loans, which accounted for 64.1 per cent of total bank credit, grew by 15.4 per cent in June 2026, compared to 8.3 per cent a year ago. At the same time, growth in working capital loans increased to 18.0 per cent from 13.4 per cent during the same period.
Credit growth remained strong across major sectors. Credit to trade (18.1 per cent) and finance (22.4 per cent) grew at a faster pace than total credit. Credit to agriculture (15.1 per cent), industry (15.5 per cent) and personal loans (12.7 per cent) also recorded higher growth.
The share of loans with an interest rate of below 9 per cent increased to nearly two-thirds in June 2026, compared to 54.1 per cent in June 2025.
The weighted average lending rate (WALR) on outstanding credit fell by 45 basis points to 9.26 per cent in June 2026, compared to 9.71 per cent a year ago.
Outstanding Credit Growth Rises Across All Bank and Population Groups
Population Group-wise Credit Growth
Credit growth increased significantly across all population groups:
- Rural areas: Credit growth increased from 12.8% in June 2025 to 21.1% in June 2026.
- Semi-urban areas: Credit growth rose from 11.8% to 21.6%.
- Urban areas: Credit growth increased from 12.7% to 21.4%.
- Metropolitan areas: Credit growth rose from 8.2% to 13.1%.
- All-India: Overall bank credit growth increased from 9.9% to 16.5%.
Among the population groups, semi-urban areas recorded the highest credit growth at 21.6% in June 2026, followed by urban areas at 21.4% and rural areas at 21.1%.
Bank Group-wise Credit Growth
Credit growth also increased across all major bank groups:
- Public Sector Banks: Credit growth increased from 11.0% in June 2025 to 17.3% in June 2026.
- Private Sector Banks: Credit growth rose from 8.3% to 14.8%.
- Foreign Banks: Credit growth increased from 8.0% to 20.5%.
- Small Finance Banks: Credit growth jumped from 16.8% to 25.1%.
- All SCBs: Overall credit growth increased from 9.9% to 16.5%.
Among the different bank groups, Small Finance Banks recorded the highest credit growth at 25.1% in June 2026, while Foreign Banks recorded growth of 20.5%.
