Bank lending saw a broad-based acceleration in July, with non-food bank credit growing 19.1 per cent year-on-year in the fortnight ended July 31, 2026, compared with 9.9 per cent in the same fortnight a year earlier, according to Reserve Bank of India data.The increase was visible across the major sectors tracked by the central bank, with industry, services, agriculture and personal loans all recording faster credit growth than a year ago.RBI stated, “On a year-on-year (y-o-y) basis, non-food bank credit grew by 19.1 per cent as on the fortnight ended July 31, 2026, compared to 9.9 per cent during the corresponding fortnight of the previous year”.The figures are based on the RBI’s sectoral deployment of bank credit data collected from 41 select scheduled commercial banks. These banks account for about 95 per cent of total non-food credit extended by all scheduled commercial banks.Among the major sectors, services recorded the fastest growth in credit. Lending to the sector expanded 22.9 per cent year-on-year in July, more than twice the 10.2 per cent growth recorded during the corresponding fortnight of the previous year.The RBI said the increase in services-sector credit was driven by segments including non-banking financial companies (NBFCs), trade and commercial real estate.Industry also saw a substantial improvement in lending growth. Credit to the sector expanded 20 per cent year-on-year in July, compared with 6.5 per cent a year earlier.Within industry, the RBI reported buoyant credit growth in infrastructure, basic metal and metal products, all engineering, chemical and chemical products, petroleum, coal products and nuclear fuels, and textiles.The improvement was seen particularly among large and medium industries, where credit growth accelerated. Credit growth for micro and small industries, however, remained steady.Agriculture and allied activities also recorded a significant increase in credit growth. Lending to the sector rose 17 per cent year-on-year in July, compared with 7.3 per cent during the corresponding fortnight last year.Personal loans, meanwhile, grew 16.2 per cent, up from 11.9 per cent a year earlier. Housing and vehicle loans continued to post double-digit growth.Not all categories of personal lending recorded stronger growth, however. Credit card outstanding and loans against gold jewellery saw their growth moderate during the period.The July figures therefore showed faster bank credit growth across several major segments rather than a rise concentrated in a single part of the economy. Industry, services and agriculture all recorded markedly higher growth than during the corresponding fortnight of the previous year.Overall, non-food bank credit growth stood at 19.1 per cent at the end of July, against 9.9 per cent a year earlier, with industry and services among the sectors recording the sharpest acceleration.
