Scheduled Commercial Banks (SCBs) recorded a robust 15.9 per cent growth in credit during FY2025-26, reflecting strong economic activity and sustained demand across sectors, the Finance Ministry said, PTI reported. Total outstanding bank credit stood at Rs 212.9 lakh crore in March 2026, an increase of Rs 29.2 lakh crore over 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 expansion was broad-based, led by the services sector, followed by personal loans, agriculture and allied activities, and industry. Credit to the agriculture and allied sector grew 15.7 per cent in FY2025-26, up from 10.4 per cent in the previous year, indicating sustained rural demand and improved credit flow. Industrial credit rose 15 per cent, compared with 8.2 per cent a year ago, supported by strong lending to micro, small and medium enterprises (MSMEs). The services sector, which accounts for about 28 per cent of total credit, saw lending grow 19 per cent year-on-year, up from 12 per cent in the same period last year, driven by demand from non-banking financial companies, trade and commercial real estate. The personal loan segment, with a 33 per cent share in overall credit, expanded 16.2 per cent during the fiscal, higher than the 11.7 per cent growth recorded in FY2024-25. Growth in housing loans remained steady, 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.
