Document title: Sectoral Deployment of Credit by NBFC – May 2026
Issuing authority: Reserve Bank of India
Reference number: Press Release 2026-2027/621
Date: 31 May 2026
Banking and credit
The Reserve Bank of India reports that total credit extended by non‑banking financial companies (NBFCs) grew 14.2 per cent year‑on‑year (y‑o‑y) in May 2026, an acceleration from the 11.4 per cent growth recorded in the same month a year earlier. The data are provisional, compiled on the last day of the month, and represent a sample of NBFCs in the Upper and Middle Layers together with housing finance companies (HFCs), covering about 87 per cent of total NBFC credit as referenced in the RBI’s "Report on Trend and Progress of Banking in India 2024‑25" (outstanding as of September 2025).
In the agriculture and allied activities segment, credit expanded robustly by 17.9 per cent y‑o‑y in May 2026, a substantial rise from the 5.0 per cent growth observed in May 2025. The industry segment saw its credit growth moderate to 7.3 per cent y‑o‑y, down from 10.0 per cent a year earlier, primarily due to subdued growth in infrastructure financing, a major component of the industry bucket.
The services sector’s credit growth moderated to 16.7 per cent y‑o‑y in May 2026, compared with 23.9 per cent in the previous year. Within services, commercial real estate credit displayed buoyant expansion, contributing positively to the sector’s performance.
Retail loans were the leading driver of overall NBFC credit growth, registering a 19.5 per cent y‑o‑y increase in May 2026 versus 14.9 per cent in May 2025. The retail segment’s growth was underpinned by strong expansions in housing loans, vehicle loans, and loans against gold jewellery.
Overall, the data indicate an accelerating credit expansion by NBFCs, with notable strength in agriculture, retail, and commercial real estate, while growth in industry and broader services moderated relative to the previous year.