Commercial Sector Funding More Than Doubles To Rs 10.65 Lakh Cr In First Four Months Of FY27: RBI

New Delhi, Aug 27 (KNN) The flow of financial resources to India’s commercial sector more than doubled to Rs 10.65 lakh crore during April-July 2026-27, from Rs 4.48 lakh crore in the same period last year, according to the Reserve Bank of India’s (RBI) August Bulletin.

The increase was mainly driven by a sharp rise in non-food bank credit and higher foreign investment, indicating stronger availability of funds for commercial activity and investment, ANI reported.

Bank Credit Leads Growth

Non-food bank credit to the commercial sector rose to Rs 6.69 lakh crore during the first four months of FY27, compared with Rs 72,705 crore in the corresponding period last year.

Non-bank sources of funding also increased to Rs 3.96 lakh crore from Rs 3.76 lakh crore. Foreign sources rose to Rs 2.08 lakh crore from Rs 1.39 lakh crore, while domestic non-bank sources declined to Rs 1.88 lakh crore from Rs 2.37 lakh crore.

Foreign direct investment (FDI) inflows during the period stood at Rs 1.62 lakh crore. The RBI noted that some data on non-bank sources was available only up to June.

Outstanding Credit Rises 

Total outstanding credit available to the commercial sector stood at Rs 323.14 lakh crore as of July 31, up 17.4 per cent year-on-year from Rs 275.24 lakh crore a year earlier.

Outstanding non-food bank credit grew 19.1 per cent to Rs 219.60 lakh crore, while outstanding non-bank sources increased 14 per cent to Rs 103.53 lakh crore.

The RBI said easing liquidity conditions were supporting credit growth and investment activity. Credit growth of scheduled commercial banks accelerated to 19.3 per cent year-on-year as of July 31 from 18.6 per cent a month earlier, while deposit growth improved to 15.4 per cent from 13.3 per cent.

The data point to stronger bank lending, increased foreign investment and improved liquidity supporting the flow of funds to commercial activity as FY27 progresses.

(KNN Bureau)