Bank credit expands at 19.1% on year, service sector credit growth spikes to 28.3%

Reserve Bank of India or RBI stated today that on a year-on-year (y-o-y) basis, non-food bank credit grew by 19.1 per cent as on the fortnight ended September 30, 2026, compared to 11.2 per cent during the corresponding fortnight of the previous year (i.e., October 03, 2025). Credit to agriculture and allied activities registered a y-o-y growth of 19.5 per cent vis-a-vis 8.9 per cent in the corresponding fortnight of the previous year.

Credit to industry recorded a y-o-y growth of 19.5 per cent (7.7 per cent in the corresponding fortnight of last year). While credit to ‘large’ and ‘medium’ industries grew at an accelerated pace, ‘micro and small’ industries exhibited steady growth. Among major industries, credit to ‘infrastructure’, ‘basic metal and metal products’, ‘all engineering’, ‘chemical and chemical products’, ‘food processing’ and ‘textiles’ marked buoyant y-o-y growth.

Credit to services sector registered a y-o-y growth of 28.3 per cent (9.9 per cent in the corresponding fortnight of the previous year), supported by buoyant growth in segments such as ‘non-banking financial companies’ (NBFCs), ‘trade’ ‘commercial real estate’, ‘transport operators’ and ‘professional services’.

RBI noted that credit to personal loans segment recorded a y-o-y growth of 17.3 per cent, as compared with 11.5 per cent a year ago. While credit growth in segments such as ‘housing’ and ‘vehicle loans’ remained resilient, ‘advances against fixed deposits’ accelerated. Growth in ‘loans against gold jewellery’ and ‘education’ decelerated compared to last year, albeit it remained strong.

Powered by Capital Market - Live News