Industry and services sectors see 20%-plus credit offtake growth

Bank credit growth surged across key sectors in July 2026, with the industry and services sectors leading the charge, each seeing over 20% growth in credit offtake. The non-food bank credit expanded 19.1% year-on-year to Rs 219.60 lakh crore, nearly double the 9.9% growth observed in the same period last year, according to data released by the Reserve Bank of India (RBI).

Industry credit growth stood out as a major driver, with the sector's credit offtake increasing 20% year-on-year. The large industry segment saw a 17.7% growth in credit to Rs 32.28 lakh crore, while the medium segment experienced a more substantial 30.5% increase to Rs 4.79 lakh crore. The micro and small segment followed with 22.6% growth to Rs 10.92 lakh crore, compared to 20.9% a year earlier.

Across industry segments, credit growth accelerated for both large and medium industries, while lending to micro and small industries maintained steady growth. Strong year-on-year expansion was reported in sectors such as infrastructure, basic metals and metal products, engineering, chemicals and chemical products, petroleum and coal products, nuclear fuels, and textiles.

Meanwhile, the services sector also demonstrated robust credit growth, with bank credit to services rising 22.9% year-on-year. This expansion was supported by heightened lending to non-banking financial companies (NBFCs) and trade and commercial real estate. Personal loans grew 16.2% year-on-year, while housing and vehicle loans continued to enjoy double-digit growth, indicating sustained household demand for these credit forms. Growth in credit card outstanding and gold jewellery loans, however, slowed down.

Despite global uncertainties and trade issues, the credit expansion was seen across various productive sectors and retail lending, indicating a significant strengthening in the transmission of economic activity into bank lending. Businesses, financial institutions, farmers, and households all benefited from increased access to credit compared to a year earlier.