Banking and Credit
The Reserve Bank of India reports that total credit extended by non‑banking financial companies (NBFCs) grew 14.4 per cent year‑on‑year (y‑o‑y) in June 2026, compared with a 11.1 per cent increase in the same month a year earlier. This data is provisional, compiled from a sample of NBFCs in the Upper and Middle Layers together with housing finance companies (HFCs), representing approximately 87 per cent of total NBFC credit as measured against the figures published in the Report on Trend and Progress of Banking in India 2024‑25 (outstanding as of September 2025).
Credit to agriculture and allied activities recorded a robust 17.9 per cent y‑o‑y growth in June 2026, markedly higher than the 5.1 per cent growth observed in June 2025. Credit to industry expanded by 6.7 per cent y‑o‑y, a slowdown from the 10.3 per cent growth recorded a year earlier; the moderation is attributed primarily to subdued growth in the infrastructure sub‑segment, which forms a major component of industry credit.
In the services sector, credit growth moderated to 17.6 per cent y‑o‑y in June 2026, down from 22.4 per cent a year ago. Within this sector, commercial real estate credit showed buoyant expansion, whereas credit to trade and transport operators experienced a deceleration.
Retail loan credit accelerated sharply, growing 20.3 per cent y‑o‑y in June 2026 versus 14.3 per cent in June 2025. The retail segment’s growth was driven by strong increases in housing loans, vehicle loans, and loans against gold jewellery.
Provisional data as reported on the last day of the month.