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Bank Credit to Industry Surges 13.5% Amidst Robust Growth
31 Mar
Summary
- Bank credit to industry grew by 13.5% by February 28, 2026.
- Growth was driven by sectors like infrastructure, chemicals, and textiles.
- Personal loans, housing, and vehicle loans also saw significant expansion.
Bank credit to industries demonstrated a substantial year-on-year increase of 13.5 percent as of February 28, 2026. This accelerated growth, up from 7.5 percent in the previous year's corresponding period, was propelled by higher lending in crucial sectors.
Key contributing sectors included infrastructure, engineering, chemicals, petroleum products, and textiles. The Reserve Bank of India (RBI) noted that loans to micro, small, and medium industries continued their double-digit expansion, with credit to large industries also showing an uptick.
Beyond industry, the services sector saw a 16.3 percent year-on-year credit growth. Personal loans also registered a healthy 15.2 percent increase, with steady housing loan growth and sharp expansions in vehicle and gold jewellery-backed loans.
Agriculture and allied activities also experienced an expansion, with credit growing by 12.3 percent. This data reflects a broad-based positive trend in bank credit deployment across various economic segments.
