Bank credit to industry registers 19.2% growth in June: RBI

The Reserve Bank of India (RBI) in its latest data has showed that bank credit to industry grew 19.2% year-on-year (y-o-y) by the end of June 2026, a sharp acceleration from 6.3% recorded in the corresponding period last year, as large companies as well as MSMEs displayed broad-based expansion. Non-food bank credit accelerated 18.3% y-o-y in the fortnight ended June 30, 2026, as compared to 9.3 per cent during the corresponding fortnight of the previous year (June 27, 2025). Credit to agriculture and allied activities also strengthened, growing 16.8% against 6.8% a year earlier.

The RBI said all sub-sectors like Micro and Small, Medium and Large industries displayed a broad-based expansion. Among major industries, credit growth remained strong in infrastructure, engineering, food processing, textiles, construction, basic metals and metal products, petroleum, coal products and nuclear fuels, and chemicals, while lending to the rubber, plastic and wood products segments witnessed relatively subdued growth.

According to the data, credit to personal loans segment also maintained strong momentum, recording a 15.8% year-on-year growth as against 11.7% a year ago. Vehicle and housing loans continued to post steady growth, although credit card outstanding moderated. Loans to the services sector registered a growth rate of 21.4% y-o-y as compared to 8.8% in the corresponding fortnight of the previous year, supported by accelerated growth in segments such as non-banking financial companies (NBFCs), commercial real estate, and trade.