Bank Credit Growth Surges To 19.1% YoY In July As Industry, Services Lending Surge: RBI

New Delhi, Sep 2 (KNN) Non-food bank credit growth accelerated sharply to 19.1 per cent year-on-year (YoY) as of the fortnight ended July 31, 2026, from 9.9 per cent in the corresponding period a year earlier, according to Reserve Bank of India (RBI) data.

The broad-based increase in lending was led by strong credit growth across industry, services, agriculture and personal loans.

Industry, Services Credit Gain Momentum

Credit to industry grew 20 per cent YoY in July, compared with 6.5 per cent a year earlier. The RBI said lending growth was buoyant in infrastructure, basic metals and metal products, engineering, chemicals, petroleum and coal products, nuclear fuels and textiles, ANI reported.

Credit to the services sector rose 22.9 per cent, more than double the 10.2 per cent growth recorded a year earlier. The acceleration was supported by lending to non-banking financial companies (NBFCs), trade and commercial real estate.

Agriculture, Personal Loans Also Accelerate

Credit to agriculture and allied activities grew 17 per cent YoY in July, up from 7.3 per cent a year earlier.

Personal loan growth also strengthened to 16.2 per cent from 11.9 per cent during the corresponding period last year. Housing and vehicle loans continued to register double-digit growth, although credit card outstanding and loans against gold jewellery recorded slower growth.

The RBI’s sectoral credit data, based on 41 select scheduled commercial banks accounting for around 95 per cent of total non-food credit, showed that large and medium industries recorded accelerated credit growth, while lending growth to micro and small industries remained steady.

The sharp rise in overall bank credit growth reflects stronger lending across major segments of the economy, particularly industry and services.

(KNN Bureau)