SCBs Register Strong 15.9% Credit Growth in FY 2025-26 Reflecting Rising Economic Activity

The Ministry of Finance recently shared a press release regarding scheduled commercial banks’ robust credit growth for FY 2025-26.

The ministry added that, in the financial year 2025-26, bank lending in India witnessed robust growth. Non-food credit increased by 15.9% year-on-year. This was a major improvement from the 10.9% growth seen in the same period last year.

By March 2026, the total outstanding bank credit reached Rs 212.9 lakh crore, which was Rs 29.2 lakh crore higher than last year.

According to the ministry, one of the major reasons for this strong growth was the low-interest-rate environment, which made borrowing cheaper for businesses and individuals. At the same time, the Government’s focus on Capex and structural reforms encouraged economic activity and investment across sectors.

It further stated that “Robust credit growth demonstrates the resilient domestic economic environment and envisages enhanced appetite for credit across sectors of the Indian economy. Strong credit growth results in corporates and individuals availing credit facilities for business expansion and acquiring durable goods, further accelerating industrial activity by additional capacity building through investment in fixed assets, generating more employment opportunities.”

The ministry stated that the services sector contributed the most to this growth, followed by personal loans, agriculture and allied activities, and the industrial sector. This indicates healthy and balanced demand for credit across the economy.

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