New Delhi, May 5: The government announced on Tuesday that Scheduled Commercial Banks (SCBs) recorded a robust credit growth of 15.9% for the fiscal year 2025-26, reflecting strong economic activity and increasing loan demand.
According to a statement from the Ministry of Finance, the non-food credit growth also stood at 15.9% by the end of FY 2026, which is a significant increase of 497 basis points compared to the 10.9% recorded in the same period of the previous fiscal year.
By March 2026, the total outstanding credit reached ₹212.9 lakh crore, an increase of ₹29.2 lakh crore from the previous year.
The statement highlighted that credit growth in FY 2025-26 was broad-based, with the service sector contributing the most. Following this were personal loans, agriculture and related activities, and the industrial sector.
Credit growth in agriculture and related sectors surged to 15.7%, up 528 basis points from last year’s 10.4%, indicating strong support for the agricultural sector.
Consistent demand in rural areas and the formalization of rural credit maintained a positive momentum in credit distribution in the primary sector during FY 2025-26.
In the industrial sector, credit distribution nearly doubled, rising to 15.0% from 8.2% the previous year.
Micro and small industries saw an impressive growth rate of 33.1%, reflecting a 3.7-fold increase in credit growth for FY 2025-26.
Medium-sized industries also exhibited positive trends, with credit increasing by 21.7%. Key sectors driving growth in the industrial sector included infrastructure, basic metals, chemicals, petroleum, coal products, and nuclear fuels.
The service sector, which contributes 28% of total credit, recorded a strong year-on-year growth of 19.0%, compared to 12.0% in the same period last year.
This growth was primarily driven by increasing demand in non-banking financial companies (NBFCs), trade, and commercial real estate sectors.
Additionally, the personal loan segment, which accounts for 33% of total credit, grew by 16.2% in FY 2026, a rise of 455 basis points from the previous year’s 11.7%.
The housing segment maintained steady growth, while vehicle loans and loans against gold jewelry continued to show strong increases.
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