Non-Food Bank Credit Surges 18.3% in June 2026 as RBI Details Sectoral Expansion

Non-Food Bank Credit Surges 18.3% in June 2026 as RBI Details Sectoral Expansion​

The Reserve Bank of India (RBI) has released crucial data detailing the sectoral deployment of bank credit for June 2026. The report highlights a substantial year-on-year increase in non-food bank credit, driven by accelerated growth across services and industry sectors. These findings indicate a significant positive trajectory in lending activities nationwide.

Overall Credit Growth Trends Show Strong Momentum​

Non-food bank credit expanded robustly during the fortnight ending June 30, 2026. Data collected from 41 select scheduled commercial banks (SCBs) showed that non-food credit grew by 18.3% year-on-year. This strong growth is a marked increase compared to the corresponding fortnight last year, which recorded a 9.3% rise.

The trend of credit deployment remains highly positive across core economic areas. Credit provided to agriculture and allied activities registered a considerable year-on-year growth of 16.8%. This contrasts sharply with the 6.8% growth seen in the same sector during the previous reporting fortnight.

Industries See Robust Gains Across Key Segments​

The industrial segment demonstrated significant strength, recording a robust year-on-year growth rate of 19.2%. This figure is considerably higher than the 6.3% expansion witnessed in industry during the prior reporting period.

A broad base supported this industrial expansion, spanning micro and small industries to medium and large sectors. Key areas showing buoyant momentum include infrastructure, all engineering, food processing, textiles, construction, basic metal and metal products, and chemical and chemical products.

However, not all industrial subsectors shared this buoyancy. The segments covering wood and wood products, along with rubber and plastic and their products, recorded marginally subdued growth rates in the reporting fortnight.

Services Sector Leads Expansion with 21.4% Growth​

The services sector emerged as the fastest-growing segment, registering a commanding 21.4% year-on-year growth. This acceleration is noteworthy, especially when compared to an 8.8% rise recorded in the previous reporting fortnight.

This high growth rate was strongly supported by accelerated credit disbursement into specialized areas. Notably, non-banking financial companies (NBFCs), commercial real estate, and the trade segment all exhibited strong momentum within the services sector.

Personal Loan Segment Records Significant Y-o-Y Increase​

Personal lending also saw considerable movement in June 2026. Credit to personal loans recorded a robust year-on-year growth of 15.8%, compared with 11.7% expansion registered a year ago.

Within the personal loan category, segments like vehicle loans and housing continued their steady upward trajectory, both recording double-digit growth. Conversely, the credit card outstanding segment registered decelerated growth during this reporting period.