New Delhi, May 5 (IANS). The government said on Tuesday that scheduled commercial banks (SCBs) have recorded a strong credit growth of 15.9 percent in the financial year 2025-26, reflecting strong economic activity and increasing demand for loans.
According to a Finance Ministry statement, non-food credit growth is also projected to be 15.9 per cent by the end of FY 2026, which is 497 basis points (bps) higher than 10.9 per cent in the same period of the previous FY 2025.
Aggregate credit outstanding by March 2026 reached Rs 212.9 lakh crore, which is Rs 29.2 lakh crore more than last year.
According to the statement, credit growth in the financial year 2025-26 was broad-based, with the service sector contributing the most. This was followed by personal loan, agriculture and allied activities and industrial sector.
Credit growth to agriculture and allied sectors increased to 15.7 per cent, 528 basis points higher than 10.4 per cent last year, reflecting strong support for the agriculture sector.
Sustained demand in rural areas and formalization of rural credit maintained the positive momentum of credit delivery in the primary sector in FY 2025-26.
Credit distribution to the industry sector almost doubled to 15.0 percent, compared to 8.2 percent last year.
Micro and small industries recorded a tremendous growth of 33.1 percent, which represents 3.7 times higher credit growth in FY 2025-26.
Positive trends were also seen in medium-sized industries, where credit increased by 21.7 percent. The main reasons for increase in debt in the industrial sector include sectors like infrastructure, basic metal, chemicals, petroleum, coal products and nuclear fuels.
The service sector, which contributes 28 per cent to the total credit, recorded a strong growth of 19.0 per cent on year-on-year basis as against 12.0 per cent in the same period last year.
This growth was mainly due to rising demand from sectors such as non-banking financial companies (NBFCs), trade and commercial real estate.
Additionally, the personal loan segment, which accounts for 33 per cent of total credit, grew by 16.2 per cent in FY26, up 455 basis points from 11.7 per cent last year.
Growth in the housing segment remained stable, while vehicle loans and loans against gold jewelery continued to show strong growth.
–IANS
DBP
