Bank Credit Growth Surges to 19.1% in July as Lending Increases Across Multiple Sectors
Bank lending in India experienced a significant surge in July, with non-food bank credit growing by 19.1% year-on-year for the fortnight ending July 31, 2026. This marks a substantial increase from the 9.9% growth recorded during the same period last year, according to data from the Reserve Bank of India (RBI). The growth spanned across major sectors, including industry, services, agriculture, and personal loans.
Sector-wise Credit Growth
The RBI reported that the services sector led the charge, with credit expanding by 22.9% year-on-year in July, a notable increase from 10.2% in the previous year. This growth was largely fueled by lending to non-banking financial companies (NBFCs), trade, and commercial real estate.
Industry also saw a robust credit growth of 20% year-on-year, up from just 6.5% a year earlier. Key contributors to this increase included infrastructure, basic metals, engineering, chemicals, petroleum, and textiles. Notably, large and medium industries experienced accelerated credit growth, while micro and small industries maintained steady lending levels.
Agriculture and Personal Loans
Agriculture and allied activities recorded a credit growth of 17% year-on-year in July, compared to 7.3% during the same fortnight last year. Personal loans also saw an increase, growing by 16.2%, up from 11.9% a year prior. Housing and vehicle loans continued to show strong double-digit growth, although some categories, such as credit card outstanding and loans against gold jewellery, experienced a slowdown.
The data indicates a broad-based acceleration in bank credit growth across multiple sectors, rather than a concentration in any single area. Overall, non-food bank credit growth reached 19.1% at the end of July, significantly higher than the 9.9% recorded a year earlier, with both industry and services showing the most pronounced increases.
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