Bank credit in India continued to expand at a robust pace in July, with overall bank credit rising 19.3% year-on-year, according to data released by the Reserve Bank of India (RBI). The acceleration was supported by strong lending growth across industry, services, agriculture and personal loans.
Credit to industry emerged as a key driver, growing 20% year-on-year, sharply higher than the 6.5% growth recorded in the corresponding fortnight of the previous year. The RBI said credit growth was supported by an acceleration in lending to large and medium industries, while credit to micro and small industries remained steady.
Among major industrial segments, infrastructure, basic metals and metal products, engineering, chemical and chemical products, petroleum and coal products and textiles recorded buoyant year-on-year credit growth.
Credit to the services sector also remained strong, registering 22.9% year-on-year growth compared with 10.2% a year earlier. The growth was supported by faster expansion in lending to non-banking financial companies (NBFCs), trade and commercial real estate.
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Agriculture and allied activities recorded 17% year-on-year credit growth, significantly higher than the 7.3% growth seen in the corresponding fortnight of the previous year. Personal loans also maintained strong momentum, with credit growth accelerating to 16.2% year-on-year from 11.9% a year ago. Housing and vehicle loans continued to record double-digit growth.
However, the RBI said growth in credit card outstanding and loans against gold jewellery decelerated during the period.
Gold loans nevertheless continued to see exceptionally strong expansion, with lending against gold rising 136% year-on-year, compared with 88% growth in the year-ago period.
The RBI data follows a sharp acceleration in industrial credit during June as well. 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% a year earlier. Overall non-food bank credit also expanded 18.3% year-on-year in June, compared with 9.3% growth in the same period last year. Outstanding non-food credit stood at Rs 217.96 lakh crore.
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