India's Bank Credit to Industry Rises 19.2 Percent in June

The Reserve Bank of India released sectoral deployment data for June 2026 showing that non-food bank credit rose 18.3 percent year-on-year, a significant increase from the 9.3 percent growth recorded in June 2025. The data, compiled from 41 scheduled commercial banks representing roughly 95 percent of total non-food credit, indicates that credit to industry grew by 19.2 percent.

Industrial expansion was broad-based across micro, small, medium, and large enterprises, with medium enterprises experiencing the fastest growth at 30 percent. High-growth sectors included petroleum, coal products and nuclear fuels, which rose 49 percent, and gems and jewellery, which increased 33 percent. The services sector grew by 21.4 percent, supported by non-banking financial companies.

Personal loans increased by approximately 16 percent, though growth varied by category. Loans against gold jewellery, including some agriculture loans, saw the most rapid surge at 93 percent. Vehicle loans and education loans grew by 17 percent and 13 percent, respectively. In contrast, credit card outstanding growth decelerated to 2 percent, down from the 7 percent growth rate seen the previous year.