Bank Credit Growth Surges Across Services, Industry, and Agriculture
RBI data reveals a sharp rise in bank lending across services, industry, and agriculture sectors for September 2026.
India's financial landscape witnessed a significant uptick in lending activity as bank credit growth accelerated across the services, industry, and agriculture sectors in September 2026. According to the latest data released by the Reserve Bank of India (RBI) on Friday, there has been a marked increase in the flow of capital into these key pillars of the economy compared to the previous year.
The Services Sector Leads the Charge
The services sector emerged as the primary driver of this growth, recording a staggering year-on-year increase of 28.3 per cent. This is a sharp jump from the 9.9 per cent growth witnessed during the same period last year.
The RBI attributed this surge to robust lending in several critical areas, including:
- Non-banking financial companies (NBFCs)
- Trade and professional services
- Commercial real estate
- Transport operators
Industrial and Agricultural Expansion
Both the industrial and agricultural sectors mirrored each other with a strong growth rate of 19.5 per cent year-on-year.
Industrial Credit Breakdown
Industrial lending saw a substantial rise from the 7.7 per cent growth recorded in the previous year. The RBI noted that while 'large' and 'medium' industries experienced an accelerated pace of credit growth, 'micro and small' industries maintained a steady trajectory. Specific sectors that saw strong credit inflows include:
- Infrastructure
- Basic metals and metal products
- Engineering and chemicals
- Food processing and textiles
Agricultural Growth
Agriculture and allied activities also saw a significant boost, with credit growing by 19.5 per cent, compared to a more modest 8.9 per cent in the corresponding period of the previous year.
Personal Loans and Consumer Trends
The appetite for personal loans also increased, growing by 17.3 per cent compared to 11.5 per cent a year earlier. While advances against fixed deposits accelerated and lending for vehicle purchases and housing remained resilient, some areas saw a dip in momentum.
Specifically, the RBI highlighted that growth in education loans and loans against gold jewellery slowed down compared to last year, although the overall growth in these segments remained strong.
The Bigger Picture
Looking at the broader spectrum, non-food bank credit grew by 19.1 per cent year-on-year as of September 30, a significant leap from the 11.2 per cent growth seen in the same period last year.
This comprehensive sectoral credit data was compiled from 41 scheduled commercial banks, which collectively represent approximately 95 per cent of the total non-food credit extended by scheduled commercial banks in the country.