Bank credit to industry grew 18.2% in August, according to Reserve Bank of India data released on Wednesday. This jump is much higher than the 7% growth seen last year. Lending to services and agriculture also got a big boost. The RBI said, "Micro and small industries sustained steady expansion."
Bank credit to industry accelerated sharply in August, while lending to services and agriculture also recorded strong year-on-year growth, according to RBI data. Non-food credit growth nearly doubled from a year earlier, pointing to broad-based credit expansion.
By PTI
Mumbai: Bank credit to industry grew 18.2% in August, sharply higher than the 7% growth recorded in the same period last year, according to data released by the Reserve Bank of India (RBI) on Wednesday.
The RBI's sectoral deployment of bank credit data for August 2026 was collected from 41 select scheduled commercial banks (SCBs), which together account for about 95% of total non-food credit extended by all SCBs.
On a year-on-year (y-o-y) basis, non-food bank credit grew 18.8% as on the fortnight ended August 31, 2026, compared with 10.2% during the corresponding fortnight a year earlier.
"While credit to 'large' and 'medium' industries grew at an accelerated pace, 'micro and small' industries sustained steady expansion," the RBI said.
Among major industries, credit to infrastructure, engineering, basic metal and metal products, chemical and chemical products, food processing, textiles, construction, and petroleum, coal products and nuclear fuels recorded strong y-o-y growth.
Credit to the services sector grew 24.3%, compared with 10.3% in the corresponding fortnight of the previous year. The growth was supported by robust expansion in segments such as non-banking financial companies (NBFCs), trade, professional services and commercial real estate.
Within personal loans, segments such as housing and vehicle loans sustained double-digit growth, while credit card outstanding and loans against gold jewellery recorded a moderation in growth.
Bank credit to agriculture and allied activities grew 17.2% y-o-y, compared with 7.6% in the corresponding fortnight of the previous year.