Bank borrowings by the private corporate sector accelerated to 21.1% at end-June 2026

RBI has stated that Bank credit growth (y-o-y) accelerated to 16.5 per cent as at end-June 2026 from 9.9 per cent a year ago. Bank borrowings by the private corporate sector accelerated to 21.1 per cent at end-June 2026, marked up from 7.9 per cent in the previous year. The credit to public and household sectors also recorded robust growth of 14.6 per cent and 15.2 per cent, respectively, in June 2026.

Bank credit to female individual borrowers expanded by 19.7 per cent in June 2026 as compared to 12.9 per cent in June 2025. Term loans, which comprised 64.1 per cent of total bank credit, grew by 15.4 per cent in June 2026 as compared to 8.3 per cent a year ago. In tandem, growth in working capital loans improved to 18.0 per cent from 13.4 per cent over the same period.

Credit growth remained broad based across major sectors; credit to trade (18.1 per cent) and finance (22.4 per cent) expanded with a pace higher than that of the total credit. Credit to agriculture (15.1 per cent), industry (15.5 per cent) and personal loans (12.7 per cent) also registered acceleration. The share of loans bearing interest rate below 9 per cent increased to nearly two-thirds in June 2026, from 54.1 per cent in June 2025. The weighted average lending rate (WALR) on outstanding credit eased by 45 basis points to 9.26 per cent in June 2026 from 9.71 per cent a year ago.

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