RBI data shows India non-food bank credit growth accelerated to 19.1% in July 2026
What happened
Reserve Bank of India data covering 41 scheduled commercial banks shows non-food bank credit grew 19.1% year-on-year in the fortnight ended July 31, 2026, up from 9.9% a year prior. Credit to industry surged to 20.0% from 6.5%, driven by accelerated lending to large and medium enterprises. Services sector credit expanded 22.9%, compared to 10.2% last year, backed by growth in non-banking financial companies, trade, and commercial real estate.
Why it matters
The accelerated borrowing across industrial and service sectors signals stronger underlying credit demand, particularly in key industries including infrastructure, basic metals, engineering, chemicals, and textiles. Meanwhile, personal loan growth picked up to 16.2% from 11.9%, sustained by double-digit growth in housing and vehicle loans, even as credit card outstanding and loans against gold jewellery experienced growth deceleration.
Bigger picture
The broad expansion reflects shifting credit dynamics across the Indian economy, with agricultural credit growth also more than doubling to 17.0% from 7.3%. Additionally, this data incorporates methodological updates under the Banking Laws (Amendment) Act 2025, which revised the reporting fortnight definition to the last day of the month starting December 31, 2025, affecting baseline year-on-year comparisons.
Watch next
Monitor subsequent RBI monthly sectoral credit releases to evaluate whether industrial borrowing momentum persists and if deceleration in credit card and gold loan growth continues across scheduled commercial banks.