- Bank lending to India’s industry rose 19.2% in June, nearly triple last year’s growth rate
- Credit to medium enterprises grew fastest at 30.3%, with large industries up 16.6%
- Manufacturing sectors like petroleum and engineering saw strong credit growth above 30%
Bank lending to India's industrial sector accelerated sharply in June, with credit growth nearly tripling from a year ago as businesses across micro, small, medium and large industries increased borrowing. Reserve Bank of India (RBI) data showed the improvement was broad-based, supported by stronger demand from manufacturing, infrastructure and services.
Outstanding credit to industry stood at Rs 47.72 lakh crore as of June 30, 2026, registering 19.2% year-on-year growth compared with 6.3% in the same period last year. The overall non-food bank credit also expanded 18.3%, up from 9.3% a year ago, taking outstanding non-food credit to Rs 217.96 trillion.
Medium, Small and Large Industries Drive Credit Growth
Industrial lending strengthened across business segments, with medium enterprises recording the fastest expansion. Credit to medium enterprises grew 30.3% year-on-year, while lending to micro and small enterprises increased 23%.
Credit to large industries rose 16.6%, a significant improvement from just 2% growth in the corresponding period last year, indicating stronger investment activity among large corporates.
Manufacturing Sectors See Robust Borrowing
Several manufacturing industries posted strong credit growth during June. Lending to petroleum, coal products and nuclear fuels jumped 48.5%, while engineering recorded a 37.6% increase.
Credit to gems and jewellery grew 32.7%, followed by vehicles, vehicle parts and transport equipment at 26%. Loans to chemicals and chemical products rose 21.3%, while lending to basic metals and metal products increased 20.9%.
According to the RBI, industries such as infrastructure, engineering, food processing, textiles, construction, chemicals and metals contributed to the broad-based rise in industrial credit.
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Infrastructure Lending Remains Strong
Infrastructure credit, which accounts for the largest share of industrial lending, increased 10.9% year-on-year to Rs 15.12 trillion.
Within the segment, lending to the power sector climbed 23.2%, reflecting continued investment in electricity generation and transmission. However, credit to telecommunications declined 11.6%, while lending to roads and airports fell 0.8% and 14.2%, respectively.
Services and Agriculture Credit Also Accelerate
The services sector continued to witness healthy borrowing, with credit growing 21.4% year-on-year compared with 8.8% a year earlier. Outstanding services credit reached Rs 61.53 trillion.
Lending to non-banking financial companies (NBFCs) led the growth, rising 32.2% to Rs 21.10 trillion. Credit to commercial real estate increased 22.1%, while trade-related lending grew 18.6%.
Meanwhile, credit to agriculture and allied activities accelerated to 16.8% year-on-year, with outstanding loans reaching Rs 26.94 trillion.
Gold Loans Outpace Other Retail Credit
Retail lending remained healthy, growing 15.8% year-on-year to Rs 71.14 trillion. Loans against gold jewellery emerged as the fastest-growing category, surging 93.8% to Rs 5.36 trillion.
Vehicle loans increased 17.3%, while housing loans rose 11%. In contrast, credit card outstanding grew only 1.9%, indicating slower growth in unsecured consumer borrowing despite the overall expansion in retail credit.
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