India’s Scheduled Commercial Banks recorded strong non food credit growth of 15.9% in FY 2025 to 26. This is a sharp increase from 10.9% last year, showing a rise of 497 basis points.
Total credit outstanding reached Rs 212.9 lakh crore in March 2026. This is Rs 29.2 lakh crore higher than the previous year, reflecting strong borrowing demand across sectors.
The growth was supported by a low interest rate environment, strong government capex, and structural reforms. Rising private investment also boosted overall credit demand in the economy.
Agriculture and allied sector credit growth increased to 15.7%, up from 10.4% last year. This rise of 528 basis points shows sustained rural demand and improved access to formal credit.
Industrial credit expanded to 15%, compared to 8.2% in the previous year. Micro and small industries recorded a strong 33.1% growth, which is 3.7 times higher than last year, while medium industries grew by 21.7%.
Key industries driving credit growth included infrastructure, basic metals, metal products, chemicals, petroleum, coal products, and nuclear fuels.
The services sector, which contributes 28% of total credit, recorded strong growth of 19% compared to 12% last year. This was mainly driven by demand from NBFCs, trade, and commercial real estate.
Personal loans, which account for 33% of total credit, grew by 16.2%, up from 11.7% last year, showing an increase of 455 basis points. Strong demand was seen in vehicle loans and gold backed loans, while housing loans remained steady.
Overall credit growth in FY 2025 to 26 was broad based across all major sectors including services, personal loans, agriculture, and industry.
Despite global geopolitical and economic challenges, India remains one of the fastest growing major economies. Strong bank balance sheets, low bad loans, and sustained profitability continue to support credit growth, investment, and job creation.
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