Banking and Credit
The RBI’s fortnight‑ended June 30, 2026 data, compiled from 41 selected scheduled commercial banks that together represent about 95 % of total non‑food credit, indicate that non‑food bank credit expanded by 18.3 % year‑on‑year (YoY). This compares with a 9.3 % YoY increase in the corresponding fortnight of the previous year (June 27, 2025).
Credit to agriculture and allied activities recorded a YoY growth of 16.8 %, markedly higher than the 6.8 % growth observed in the same period last year.
Industry credit showed a robust YoY rise of 19.2 %, far outpacing the 6.3 % growth recorded a year earlier. All industry size categories—‘Micro and Small’, ‘Medium’ and ‘Large’—experienced broad‑based expansion. Among major industries, credit to infrastructure, all engineering, food processing, textiles, construction, basic metal and metal products, petroleum, coal products and nuclear fuels, and chemical and chemical products posted buoyant YoY growth. In contrast, the rubber‑plastic and wood‑product segments registered marginally subdued growth.
The services sector witnessed a YoY credit growth of 21.4 %, compared with 8.8 % in the corresponding fortnight of the prior year. This acceleration was driven primarily by increased lending to non‑banking financial companies (NBFCs), commercial real‑estate, and trade activities.
Personal‑loan credit grew 15.8 % YoY, up from 11.7 % a year ago. Within this segment, vehicle loans and housing loans continued to expand in double‑digit terms, while the growth rate of credit‑card outstanding decelerated.
Footnote 1: Data pertain to the last reporting fortnight of the month, based on sector‑wise and industry‑wise bank credit (SIBC) return. Effective 31 December 2025, the definition of the last reporting fortnight was changed to the last day of the month under the Banking Laws (Amendment) Act 2025. Consequently, YoY growth rates from December 2025 onward are based on end‑of‑month data for the current year and the last‑reporting‑fortnight data for the corresponding month of the previous year.
Footnote 2: Non‑food credit data are derived from the Section‑42 return, which covers all scheduled commercial banks.
Overall, the June 2026 figures reflect a pronounced acceleration in credit deployment across agriculture, industry and services, with particular strength in infrastructure‑related and NBFC‑linked lending, while certain commodity‑focused segments such as rubber‑plastic and wood products showed only modest gains.