Document Title: Quarterly Basic Statistical Return (BSR)-1 on Credit by Scheduled Commercial Banks – June 2026
Issuing Authority: Reserve Bank of India
Reference Number: Press Release: 2026-2027/1000
Date: 31 August 2026
Banking and Credit
The RBI reports that total bank credit to scheduled commercial banks (excluding RRBs) expanded 16.5 per cent year‑on‑year as of end‑June 2026, up from 9.9 per cent in the same quarter a year earlier. Growth was broad‑based across all population groups—rural, semi‑urban, urban and metropolitan—and across all bank groups. Private corporate sector borrowings accelerated sharply, rising 21.1 per cent YoY, while credit to the public sector and households grew 14.6 per cent and 15.2 per cent respectively. Credit to female individual borrowers increased 19.7 per cent, higher than the 12.9 per cent growth recorded in June 2025. Term loans, which represent 64.1 per cent of total bank credit, grew 15.4 per cent YoY; working‑capital loans rose 18.0 per cent. Sector‑wise, credit to trade expanded 18.1 per cent and to finance 22.4 per cent, outpacing overall credit growth. Agriculture, industry and personal loans recorded increases of 15.1 per cent, 15.5 per cent and 12.7 per cent respectively.
Policy Rates and Liquidity
The weighted average lending rate (WALR) on outstanding credit eased by 45 basis points, falling to 9.26 per cent in June 2026 from 9.71 per cent a year earlier. The proportion of loans bearing an interest rate below 9 per cent rose to nearly two‑thirds of the portfolio, up from 54.1 per cent in June 2025, indicating a continued downward pressure on borrowing costs.
Overall, the June 2026 statistical return highlights a robust acceleration in credit expansion across borrower categories and sectors, coupled with a notable decline in average lending rates, reflecting easing credit conditions in the Indian banking system.