September 2026 Bank Credit Growth Hits 19% YoY
Non-food bank credit across India expanded by 19.1% year-on-year in the fortnight ending September 30, 2026, according to data from 41 scheduled commercial banks that represent roughly 95% of total non-food credit. This compares with an 11.2% increase in the same period a year earlier.
Credit to agriculture and allied activities grew 19.5% YoY, up from 8.9% the previous year. Industry credit also rose 19.5% YoY, outpacing the 7.7% growth recorded a year before. Within industry, large and medium firms saw accelerated lending, while micro and small firms maintained steady growth. Infrastructure, basic metal and metal products, all engineering, chemical and chemical products, food processing and textiles reported the strongest YoY gains.
The services sector recorded the highest YoY increase at 28.3%, versus 9.9% a year earlier. Growth was driven by lending to non-banking financial companies, trade, commercial real estate, transport operators and professional services. Personal loans grew 17.3% YoY, compared with 11.5% previously, with housing and vehicle loans remaining resilient. Advances against fixed deposits accelerated, while loans against gold jewellery and education slowed, though they stayed robust.
The figures reflect a change in reporting methodology introduced by the Banking Laws (Amendment) Act 2025, which shifted the “last reporting fortnight” to the month-end date from December 31, 2025 onward. Consequently, YoY growth rates from December 2025 are based on end-of-month data for the current year and the former fortnight definition for the prior year.
Why it matters
The surge in credit to key sectors signals expanding financing opportunities for businesses and consumers, affecting investment and spending trends.
FAQ
What was the overall YoY growth in non-food bank credit for September 2026?
Non-food bank credit grew by 19.1% YoY in the fortnight ended September 30, 2026.
Which sector showed the highest YoY credit growth?
The services sector recorded a 28.3% YoY increase.
How did credit to agriculture change YoY?
Credit to agriculture and allied activities grew 19.5% YoY.
What reporting change affects the YoY calculations?
From December 31, 2025, the last reporting fortnight was changed to the month-end date under the Banking Laws (Amendment) Act 2025.
Source: RBI Press Releases. See the original source for full details.
Scan with your phone
Scan with your phone