- India’s banking sector witnessed a significant rise in credit growth during April 2026, with non-food bank credit expanding by 15.8% year-on-year, compared to 9.8% growth in the corresponding period of the previous year, according to data released by the Reserve Bank of India.
- The data is based on information collected from 41 scheduled commercial banks, which account for nearly 95% of the country’s total non-food credit.
Agriculture Credit Growth Strengthens
- Credit extended to the agriculture and allied activities sector grew by 13.7% year-on-year as of the fortnight ended April 30, 2026, up from 9.2% during the same period last year.
- The increase reflects stronger financing support for farming, livestock, fisheries, and other allied rural activities.
Industrial Credit Records Sharp Improvement
Industry Credit Growth Doubles
Credit to the industrial sector grew by 15.1%, more than double the 7.0% growth recorded in the corresponding fortnight of 2025.
The RBI noted that lending to:
- Micro industries
- Small industries
- Large industries
accelerated significantly, while medium industries maintained stable growth.
Industries Driving Credit Demand
Higher credit growth was observed in:
- Infrastructure
- Basic metals and metal products
- Engineering industries
- Petroleum, coal products, and nuclear fuels
- Chemicals and chemical products
Sectors Showing Slower Growth
Some industries recorded relatively softer credit growth, including:
- Construction
- Textiles
- Rubber and plastic products
Services Sector Emerges as Growth Leader
Credit Growth Reaches 18.6%
The services sector posted the strongest performance, with credit growth rising to 18.6% year-on-year, compared with 10.1% in the same period last year.
Major Contributors
Growth was driven by higher lending to:
- Non-Banking Financial Companies (NBFCs)
- Commercial Real Estate
- Trade
- Professional Services
The strong expansion indicates increasing business activity and investment across the services ecosystem.
Personal Loans Continue Strong Momentum
Credit under the personal loans segment increased by 16.0% year-on-year, compared to 11.9% growth a year earlier.
Credit Card Growth Moderates
While overall personal loan growth remained strong, the RBI noted a moderation in credit card outstanding balances, suggesting a more measured pace of unsecured consumer borrowing.
Key Highlights at a Glance
| Sector | Growth in April 2026 | Growth in April 2025 |
|---|---|---|
| Non-Food Bank Credit | 15.8% | 9.8% |
| Agriculture & Allied Activities | 13.7% | 9.2% |
| Industry | 15.1% | 7.0% |
| Services | 18.6% | 10.1% |
| Personal Loans | 16.0% | 11.9% |
Significance
The broad-based rise in bank lending across agriculture, industry, services, and retail segments indicates improving economic activity and stronger credit demand in the economy. The sharp increase in industrial and services sector lending suggests growing investment and business expansion, while sustained growth in housing and vehicle loans reflects healthy consumer demand.