Scheduled commercial banks clock robust credit growth at 15.9 pc in FY2

Buoyed by strong economic activity and rising credit demand, scheduled commercial banks (SCBs) posted a solid credit growth of 15.9 % in FY 2025‑26, the government announced on Tuesday.

Non‑food credit growth in FY 2026 came in at a vigorous 15.9 %, up 497 basis points from the 10.9 % recorded in FY 2025.

Total credit outstanding stood at Rs 212.9 lakh crore in March 2026, which is Rs 29.2 lakh crore more than a year earlier.

According to a Finance Ministry release, FY 2025‑26 credit expansion was broad‑based, led by the services sector, then personal loans, agriculture & allied activities, and finally industry.

Credit to agriculture and allied activities rose to 15.7 %, a jump of 528 basis points over the 10.4 % seen a year earlier, indicating stronger backing for the farm sector.

Continued rural demand and the formalisation of rural lending have contributed to the upbeat trend in primary‑sector credit uptake during FY 2025‑26.

Industrial‑sector credit nearly doubled, climbing to 15.0 % from 8.2 % the previous year.

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Micro and small industries posted a 33.1 % increase, which is about 3.7 times the growth rate recorded a year earlier.

Medium‑scale industries also showed improvement, with credit rising 21.7 %. The main contributors to industrial lending were infrastructure, basic metals and metal products, chemicals, petroleum, coal products and nuclear fuels.

The services sector, which accounts for 28 % of total credit, expanded robustly by 19.0 % year‑on‑year, up from 12.0 % in the comparable period a year earlier.

This rise was chiefly fuelled by strong demand from NBFCs, trade, and commercial real estate.

Furthermore, personal loans—making up roughly 33 % of total credit—grew 16.2 % in FY 2026, an increase of 455 basis points over the 11.7 % recorded a year earlier.

Housing‑loan growth stayed steady, whereas vehicle loans and gold‑jewellery‑backed loans kept up their strong momentum.

(With inputs from IANS)