India Bank Credit Grows 17.94% Amid Festive Demand
The Reserve Bank of India reports bank credit grew 17.94% year-on-year to Rs 232.54 lakh crore, outpacing deposit growth through October 2026.
Bank credit in India grew 17.94% year-on-year to Rs 232.54 lakh crore as of October 15, 2026, according to data from the Reserve Bank of India. This growth outpaced the 16.60% increase in deposits, which reached Rs 284.37 lakh crore. The central bank attributed the acceleration to festive season demand and a banking system liquidity surplus between Rs 2 lakh crore and Rs 4.5 lakh crore during the first half of October.
Sectoral data for September 2026 shows non-food bank credit grew 19.1% year-on-year, up from 11.2% in the previous year. The services sector experienced the most significant expansion at 28.3%, fueled by lending to trade, transport operators, professional services, commercial real estate, and non-banking financial companies. Industrial and agricultural credit both grew by 19.5% year-on-year.
Within the industrial sector, infrastructure, textiles, and chemicals showed strong growth, with large and medium industries accelerating faster than micro and small firms. While personal loans increased by 17.3%, the growth of education loans and loans against gold jewellery moderated. Additionally, commercial bank holdings in government securities rose 9.64% to Rs 77.32 lakh crore, with central government securities comprising the vast majority of these investments.
