ENA Sectors 2026-05-05 17:26:36 <p><span style="font-size:14px"><strong>New Delhi, May 5 (KNN)</strong> Indias non-food credit grew 15.9 per cent year-on-year (YoY) in FY2025 26, indicating strong lending momentum.</span></p> <p><span style="font-size:14px">According to data released by the Finance Ministry on Tuesday, total outstanding bank credit stood at Rs 212.9 lakh crore as of March 2026, an increase of Rs 29.2 lakh crore over the previous year.</span></p> <p><span style="font-size:14px">The growth comes amid a low interest rate environment and sustained government-led capital expenditure, which has helped crowd in private investments and boost confidence among both corporate and retail borrowers.</span></p> <p><strong><span style="font-size:14px">Broad-Based Growth Across Key Sectors</span></strong></p> <p><span style="font-size:14px">The data highlighted that credit expansion during the year was broad-based, with all major sectors recording stronger growth. </span></p> <p><span style="font-size:14px">Lending to the services sector, which accounts for around 28 per cent of total credit, rose by 19 per cent compared with 12 per cent a year earlier, driven mainly by NBFCs, trade and commercial real estate. </span></p> <p><span style="font-size:14px">The retail segment, contributing about 33 per cent of overall credit, grew by 16.2 per cent versus 11.7 per cent last year, with steady housing loan demand and strong traction in vehicle and gold-backed loans.</span></p> <p><span style="font-size:14px">Credit to agriculture and allied activities accelerated to 15.7 per cent, supported by sustained rural demand and greater formalisation of farm credit. </span></p> <p><span style="font-size:14px">Meanwhile, lending to industry nearly doubled to 15 per cent from 8.2 per cent in FY25, led by micro and small enterprises with a sharp 33.1 per cent rise, while medium industries grew by 21.7 per cent, with infrastructure, metals, chemicals and energy sectors as key contributors.</span></p> <p><strong><span style="font-size:14px">Positive Outlook for Investment and Employment</span></strong></p> <p><span style="font-size:14px">Sustained credit growth is expected to support business expansion, infrastructure development, and consumption demand. Increased borrowing by companies and households is likely to drive capacity creation, boost industrial activity, and generate employment opportunities.</span></p> <p><span style="font-size:14px"><em><strong>(KNN Bureau)</strong></em></span><br /> </p> 46018 https://knnindia.co.in/news/newsdetails/sectors/non-food-credit-growth-rises-to-159-yoy-in-fy26-govt 2026-05-05 17:26:36 knnindia.co.in