Bank credit to services sector grows 28.3% in September; NBFC lending rises 41.8%, gold loan growth moderates

Market Mastery

Webinar by Vishal Malkan

Find the weak links

in your portfolio by Vishal Malkan

Bank credit to the services sector grew 28.3 per cent year-on-year in September 2026, led by strong lending to non-banking financial companies (NBFCs), computer software and aviation, according to the latest sectoral deployment of bank credit data released by the Reserve Bank of India (RBI) on Friday.

Outstanding credit to the services sector stood at Rs 64.9 lakh crore as on September 30, compared with Rs 50.58 lakh crore a year ago.

Credit to NBFCs, the largest component within services, increased 41.8 per cent to Rs 22.53 lakh crore. Lending to public financial institutions surged 79.7 per cent, while credit to housing finance companies grew 19.7 per cent.

Credit to computer software companies rose 45.8 per cent, while aviation lending increased 42.7 per cent. Trade credit grew 23.9 per cent and commercial real estate lending expanded 23.3 per cent.

However, credit growth moderated in shipping, where lending rose 9.4 per cent compared with 32.5 per cent a year ago.

Bank credit to industry increased 19.5 per cent year-on-year to Rs 49.77 lakh crore. Lending to micro and small enterprises grew 24.4 per cent, while credit to medium enterprises rose 33.2 per cent. Large-industry credit expanded 16 per cent.

Within industries, credit to engineering grew 36 per cent, gems and jewellery 33 per cent and construction 30 per cent. However, lending to beverages and tobacco slowed to 6.8 per cent from 14.6 per cent a year ago. Credit to other metal and metal products also moderated to 11.9 per cent from 20.6 per cent.

Infrastructure credit grew 11.8 per cent. While power-sector lending increased 22.9 per cent, road credit grew just 0.7 per cent. Telecommunications lending contracted 13.4 per cent, while credit to railways, excluding Indian Railways, declined 22.5 per cent.

Gold loan growth moderates

Outstanding loans against gold jewellery increased 82.6 per cent year-on-year to Rs 57,719 crore in September, compared with 124.8 per cent growth in the corresponding period last year. On a financial-year basis, gold loan outstanding grew 25.1 per cent between March and September, against 52.7 per cent in the corresponding period last year.

The RBI flagged a classification-related factor in the segment, stating: "Since May 2024, a bank has changed the classification of a category of agricultural loan into 'Loans against gold jewellery' under retail segment."

Meanwhile, personal loans grew 17.3 per cent to Rs 74.27 lakh crore, while credit to agriculture and allied activities increased 19.5 per cent to Rs 28.19 lakh crore.

Total outstanding bank credit, including food and non-food credit, stood at Rs 229.95 lakh crore, registering annual growth of 19.4 per cent.

The RBI said the sectoral data covers select banks accounting for about 95 per cent of total non-food credit extended by scheduled commercial banks