Industrial credit growth triples to 19.2% in June on broad-based rise

Industrial lending gathered pace across micro, small, medium and large enterprises as non-food bank credit, services, agriculture and retail loans also recorded stronger growth

Bank credit to industry trebled to 19.2 per cent year-on-year (Y-o-Y) in June from 6.3 per cent driven by broad-based growth across micro, small, medium and large enterprises, Reserve Bank of India (RBI) data on sectoral deployment of credit showed.

 

Outstanding credit to industry stood at ~47.72 trillion on June 30, 2026.

 

The pickup in industrial lending came amid a sharp acceleration in overall bank credit. Non-food bank credit grew 18.3 per cent Y-o-Y as of June 30, compared with 9.3 per cent in the corresponding fortnight of the previous year. Outstanding non-food credit stood at ~217.96 trillion.

   

Within industry, credit to medium enterprises grew 30.3 per cent Y-o-Y, while lending to micro and small enterprises rose 23 per cent. Credit to large industries increased 16.6 per cent, sharply higher than the 2 per cent growth recorded in the corresponding period last year.

 

Among major industries, credit to petroleum, coal products and nuclear fuels rose 48.5 per cent Y-o-Y, while lending to engineering increased 37.6 per cent. Credit to gems and jewellery grew 32.7 per cent, vehicles, vehicle parts and transport equipment by 26 per cent, chemicals and chemical products by 21.3 per cent, and basic metals and metal products by 20.9 per cent.

 

Infrastructure credit, which accounts for the largest share of industrial lending, grew 10.9 per cent Y-o-Y to ~15.12 trillion. Within infrastructure, credit to the power sector rose 23.2 per cent, while lending to telecommunications declined 11.6 per cent. Credit to roads fell 0.8 per cent, while lending to airports contracted 14.2 per cent.

 

The RBI said credit growth to industry was broad-based, with infrastructure, engineering, food processing, textiles, construction, basic metals and metal products, petroleum, coal products and nuclear fuels, and chemicals and chemical products recording strong growth. However, credit growth to rubber, plastic and their products and wood and wood products remained relatively subdued.

 

Services sector credit also accelerated, growing 21.4 per cent Y-o-Y, compared with 8.8 per cent in the corresponding period last year. Outstanding services credit stood at ~61.53 trillion.

 

Credit to non-banking financial companies (NBFCs) led the pickup, growing 32.2 per cent Y-o-Y to ~21.10 trillion. Credit to commercial real estate rose 22.1 per cent to ~6.67 trillion, while lending to trade increased 18.6 per cent to ~13.87 trillion.

 

Credit to agriculture and allied activities grew 16.8 per cent Y-o-Y to ~26.94 trillion, accelerating from 6.8 per cent growth in the corresponding period last year.

 

Retail loan growth stood at 15.8 per cent Y-o-Y, compared with 11.7 per cent a year earlier, with outstanding credit at ~71.14 trillion. Within personal loans, loans against gold jewellery surged 93.8 per cent Y-o-Y to ~5.36 trillion. Vehicle loans grew 17.3 per cent to ~7.54 trillion, while housing loans rose 11 per cent to ~34.04 trillion. Credit card outstanding, however, grew 1.9 per cent Y-o-Y to ~2.98 trillion, slowing from 7.2 per cent growth in the corresponding period last year.