Scheduled Commercial Banks (SCBs) registered a robust 15.9% growth in credit during the financial year 2025-26, reflecting strong economic activity and sustained demand across various sectors, as per a Finance Ministry report cited by PTI.
Credit Growth Highlights
Total outstanding bank credit stood at Rs 212.9 lakh crore in March 2026, marking an increase of Rs 29.2 lakh crore over the previous year. The ministry noted that amid a low-interest rate environment, the government-supported capital expenditure cycle, backed by timely structural reforms, is encouraging private investments and boosting domestic credit demand. This has reinstated confidence among corporate and individual borrowers in the Indian economy.
Sectoral Performance
The credit expansion was broad-based, led by the services sector, followed by personal loans, agriculture and allied activities, and industry. Credit to agriculture and allied sectors grew 15.7% in FY2025-26, up from 10.4% in the previous year, indicating sustained rural demand and improved credit flow. Industrial credit rose 15%, compared with 8.2% a year ago, supported by strong lending to micro, small and medium enterprises (MSMEs).
Services and Personal Loans
The services sector, which accounts for about 28% of total credit, saw lending grow 19% year-on-year, up from 12% in the same period last year. This growth was driven by demand from non-banking financial companies, trade, and commercial real estate. The personal loan segment, with a 33% share in overall credit, expanded 16.2% during the fiscal, higher than the 11.7% growth recorded in FY2024-25. Growth in housing loans remained steady, while vehicle loans and loans against gold jewellery continued to show strong momentum.
Economic Resilience
Against the challenging global backdrop marked by geo-economic fragmentation and geopolitical pressures, the Indian economy has shown remarkable resilience and has consistently been the fastest growing major economy in the world, the ministry added.
