Bank credit jumps 16.5% in June as corporate loans rise 21.1%; non-food credit up 19.1% in July: RBI data

Bank credit growth accelerated to 16.5% in June 2026 from 9.9% a year earlier, driven by a sharp 21.1% expansion in corporate sector loans, while non-food credit growth nearly doubled to 19.1% by the fortnight ended July 31, according to Reserve Bank of India (RBI) data.

The RBI’s latest sectoral deployment of bank credit data, collected from 41 select scheduled commercial banks accounting for about 95% of total non-food credit, showed broad-based acceleration in lending across industry, agriculture, services and personal loans.

Industry, services see sharp acceleration

Credit to industry grew 20% year-on-year in July, compared with 6.5% in the corresponding fortnight of the previous year. The RBI said credit growth among large and medium industries accelerated, while micro and small industries maintained steady growth.

Among major industrial segments, infrastructure, basic metal and metal products, all engineering, chemical and chemical products, petroleum, coal products and nuclear fuels, and textiles recorded buoyant year-on-year growth.

Agriculture and allied activities recorded 17% credit growth in July, up from 7.3% a year earlier. Services credit expanded 22.9%, more than twice the 10.2% growth recorded a year earlier, led by stronger lending to non-banking financial companies, trade and commercial real estate.

Personal loan growth also accelerated to 16.2% from 11.9%. Housing and vehicle loans sustained double-digit growth, although credit card outstanding and loans against gold jewellery decelerated.

Deposits rise 11.6%; older cohorts dominate

Scheduled commercial bank deposits grew 11.6% year-on-year in June. Private banks recorded 13.8% growth, compared with 10.3% for public sector banks.

The household sector remained the largest contributor, accounting for 58.8% of total deposits and 98.9% of incremental deposits during the quarter. People aged above 40 accounted for over three-fourths of individual deposits, while those aged 25-40 accounted for slightly less than 20%.

Term deposits, the main driver of deposit accumulation, grew 12.9%, ahead of current deposits at 5.3% and savings deposits at 10.6%. Term deposits of ₹1 crore and above constituted 47.3% of total term deposits, with deposits of ₹5 crore and above accounting for 35.7%.

Credit to female individual borrowers grew 19.7% in June, up from 12.9% a year earlier. The share of loans carrying interest rates below 9% rose to nearly two-thirds from 54.1% in June 2025, while the weighted average lending rate on outstanding credit eased 45 basis points to 9.26% in June 2026.