Banks record robust 15.9 pc credit growth in FY26: FinMin

New Delhi, May 5 (PTI) Scheduled Commercial Banks (SCBs) have recorded robust credit growth of 15.9 per cent in the 2025-26 fiscal, reflecting strong economic activity and credit demand, the Finance Ministry said on Tuesday.

The aggregate credit outstanding in March 2026 reached Rs 212.9 lakh crore, Rs 29.2 lakh crore higher than the previous year.

“Amidst a low-interest rate environment, the government aided Capex cycle supported by timely structural reforms, private investments are crowding in and boosting domestic credit demand, reinstating confidence among corporate as well as individual borrowers in the Indian economy,” the ministry said.

The credit growth in FY2025-26 has been broad-based, led by the services sector, followed by the personal

loan segment, agriculture and allied activities, and industry.

During the fiscal year, agriculture and allied sector credit growth accelerated to 15.7 per cent in FY 2025-26, up from 10.4 per cent a year ago, reflecting sustained rural demand and improved credit flow.

Industrial credit expanded 15 per cent in FY 2025-26 compared to 8.2 per cent in the previous year, driven by strong momentum in MSME lending.

Services sector credit, which contributes 28 per cent to the overall credit, recorded a robust expansion of 19 per cent year-on-year (compared to 12 per cent recorded during the same period last year). The surge was primarily driven by high demand from segments like non-banking financial companies, trade, and commercial real estate.

The personal loan segment, with a 33 per cent share in overall credit, expanded by 16.2 per cent in FY2025-26, higher than the 11.7 per cent growth registered a year ago.

The growth remained steady in the housing segment, while vehicle loans and loans against gold jewellery continued to show strong momentum.

“Against the challenging global backdrop surrounded by geo-economic fragmentation and geo-political pressures, the Indian economy has shown remarkable resilience and has been consistently the fastest growing major economy in the world,” the ministry said. PTI JD BAL BAL