Reflecting strong economic activity and credit demand, scheduled commercial banks (SCBs) saw a significant credit growth of 15.9% in FY 2025-26. This marked a notable increase of 497 basis points from the previous fiscal year, reaching an aggregate credit outstanding of Rs 212.9 lakh crore by March 2026. The growth was broad-based, led by the services sector, personal loans, agriculture, and industry.
Credit growth in the agriculture and allied activities sector surged by 15.7%, showcasing a 528 basis points increase from the previous year. This growth was supported by sustained rural demand and formalization of rural credit, strengthening the primary sector credit offtake. Industrial sector credit deployment expanded by 15.0%, nearly doubling from the previous year, with micro and small industries experiencing a remarkable 33.1% growth in FY 2025-26.
In the services sector, which contributes significantly to overall credit, there was a robust expansion of 19.0% year-on-year. This growth was primarily fueled by high demand from Non-Banking Financial Companies, trade, and commercial real estate. The personal loan segment, constituting 33% of overall credit, expanded by 16.2% in FY26, with steady growth in housing loans and strong momentum in vehicle loans and loans against gold jewelry.
