Scheduled Banks Report 15.9 Per Cent Credit Growth In FY 2025-26

08 May 2026 CW Team

Credit expansion was broad based, led by the services sector and followed by personal loans, agriculture and industry. Services credit, which accounts for 28 per cent of total lending, expanded by 19.0 per cent year on year driven by demand from non-banking financial companies, trade and commercial real estate. The personal loan segment, representing 33 per cent of overall credit, grew by 16.2 per cent with steady housing credit and strong momentum in vehicle loans and loans against gold jewellery. Agriculture and allied activities recorded 15.7 per cent growth, 528 basis points higher than the prior year, reflecting sustained rural demand and improved formal credit flow.

Industry credit expanded to 15.0 per cent from 8.2 per cent a year ago, with micro and small industries registering 33.1 per cent year-on-year growth, roughly three point seven times higher than in the previous year. Medium scale industries saw credit rise by 21.7 per cent. Key industrial drivers included infrastructure, basic metal and metal products, chemicals and chemical products, and petroleum and coal related segments.

Robust credit growth underscores resilience in the domestic economic environment and is expected to support business expansion and acquisition of durable goods, thereby enhancing capacity building and employment generation. Despite a challenging global backdrop with geo-economic fragmentation and geopolitical pressures, the economy demonstrated notable resilience. The banking sector remains well capitalised with historically low impaired assets and sustained profitability, which augments growth potential. Continued efforts to democratise and formalise credit have contributed to the broad based nature of lending growth.

"Join industry leaders at RAHSTA Expo, India's premier platform for roads, highways and traffic infrastructure. Register now to explore innovations, network with experts and shape the future of mobility."

The financial year 2025-26 ended with year-on-year non-food credit growth of 15.9 per cent, a rise of 497 basis points from 10.9 per cent a year earlier. Aggregate credit outstanding in March 2026 reached Rs 212.9 tn, Rs 29.2 tn higher than the previous year. A low interest rate environment and a government aided capital expenditure cycle supported by structural reforms helped crowd in private investment and boost domestic credit demand. Credit expansion was broad based, led by the services sector and followed by personal loans, agriculture and industry. Services credit, which accounts for 28 per cent of total lending, expanded by 19.0 per cent year on year driven by demand from non-banking financial companies, trade and commercial real estate. The personal loan segment, representing 33 per cent of overall credit, grew by 16.2 per cent with steady housing credit and strong momentum in vehicle loans and loans against gold jewellery. Agriculture and allied activities recorded 15.7 per cent growth, 528 basis points higher than the prior year, reflecting sustained rural demand and improved formal credit flow. Industry credit expanded to 15.0 per cent from 8.2 per cent a year ago, with micro and small industries registering 33.1 per cent year-on-year growth, roughly three point seven times higher than in the previous year. Medium scale industries saw credit rise by 21.7 per cent. Key industrial drivers included infrastructure, basic metal and metal products, chemicals and chemical products, and petroleum and coal related segments. Robust credit growth underscores resilience in the domestic economic environment and is expected to support business expansion and acquisition of durable goods, thereby enhancing capacity building and employment generation. Despite a challenging global backdrop with geo-economic fragmentation and geopolitical pressures, the economy demonstrated notable resilience. The banking sector remains well capitalised with historically low impaired assets and sustained profitability, which augments growth potential. Continued efforts to democratise and formalise credit have contributed to the broad based nature of lending growth.

Real Estate

07 Jul 2026

Pecan Realty Completes Rs 1.5 Billion Transactions

Pecan Realty has recently completed four institutional transactions worth over Rs 1.5 billion over the past two years, strengthening its position as an execution-led real estate platform. The deals include resolution-led acquisitions, structured finance transactions and capital partnerships across its development portfolio.The transactions covered acquisitions through the National Company Law Tribunal process and helped provide repayment or exits to both private and public sector lenders. The company said the deals demonstrate its ability to resolve complex project situations, work with instit..

Real Estate

07 Jul 2026

SNN Estates Expands North Bengaluru Housing Project

SNN Estates has announced an expansion of its SNN Estates Felicity residential project in North Bengaluru following strong buyer demand, with 75 per cent of the first-phase inventory sold within three days of launch.The developer will add 76 apartments in the new phase, taking the project's estimated revenue potential to around Rs 1,000 crore upon completion of Phase 2.Spread across 6.5 acres in Rachenahalli, near Manyata Tech Park, the project comprises 604 apartments in 1.5, 2, 2.5, 3 and 4 BHK configurations. The development includes a 50,000-sq-ft clubhouse with amenities such as sports co..

Infrastructure Urban

07 Jul 2026

SCG Drives ASEAN Industrial Transformation Strategy

SCG is strengthening its focus on ASEAN as a key growth region by advancing industrial transformation, enhancing competitiveness and building resilient regional value chains. Thammasak Sethaudom, President and Chief Executive Officer, SCG, highlighted the need for industries to continuously develop capabilities, strengthen resilience and deepen regional cooperation to achieve sustainable long-term growth.SCG views ASEAN as an important growth engine alongside China, supported by favourable demographics, trade connectivity and investment flows. With ASEAN’s GDP projected to grow by around 4.7..