Bank credit to industry grew 20% year-on-year in July to an outstanding of Rs 48.01 lakh crore, with strong expansion showing in engineering, gems & jewellery, petroleum, chemicals and vehicles.

In the year-ago period, the growth was 6.5% to an outstanding of Rs 40.02 lakh crore, with mainly engineering standing out at 23%. 

Credit to services sector grew 22.9% in July (outstanding of Rs 61.97 lakh crore) compared to 10.2% growth in the corresponding fortnight a year ago, according to the latest data released by the Reserve Bank of India (RBI). This sharp rise was supported by accelerated expansion in segments such as non-banking financial companies (NBFCs), trade and commercial real estate.

Advances to agriculture and allied activities grew 17% to an outstanding Rs 27.07 lakh crore as on 31 July 2026, compared to 7.3% growth in the corresponding fortnight of the previous year.

The data also showed that the credit to personal loans recorded a growth of 16.2% to an outstanding of Rs 71.83 lakh crore, as compared with 11.9% a year ago.

The RBI on Monday released data on sectoral deployment of bank credit for July collected from 41 select scheduled commercial banks (SCBs) which together account for about 95% of the total non-food credit.

Total bank credit outstanding at Rs 221 lakh crore

The total bank credit outstanding stood at Rs 220.78 lakh crore as on 31 July 2026. It grew 19.3% YoY in July as against 10% during the same period last year. 

Non-food bank credit grew by 19.1% to an outstanding of Rs 219.60 lakh crore as on the fortnight ended 31 July 2026. This is against 9.9% growth during the fortnight ended 25 July 2025. 

Food credit grew by 107.9% to an outstanding of Rs 1.18 lakh crore as on 31 July 2026. This compared with a growth of 101% a year ago.

Credit to industries

Credit to 'large' and 'medium' industries grew at an accelerated pace while 'micro and small' industries exhibited steady growth, the RBI said.

Among major industries, credit to ‘infrastructure’, ‘basic metal and metal products’, ‘all engineering’, ‘chemical and chemical products’, ‘petroleum, coal products and nuclear fuels’ and ‘textiles’ marked buoyant YoY growth.

Credit to micro and small industries grew 22.6% (outstanding of Rs 10.92 lakh crore as on 31 July 2026) while lending to medium industries increased 30.5% (Rs 4.80 lakh crore). Large industries accelerated 17.7% YoY in July (outstanding of Rs 32.29 lakh crore), compared to 1.6% growth a year ago.

Among major industrial segments, credit to all engineering grew at 36.2% YoY (outstanding of Rs 3.43 lakh crore as on 31 July 2026). Within this, credit to industries other than electronics increased 40.1% (Rs 2.73 lakh crore) while loans to electronics rose 22.8% (Rs 70,550 crore).

Credit to gems and jewellery rose 35.7% (Rs 1.24 lakh crore) while lending to vehicles, vehicle parts and transport equipment rose 32.2% (Rs 1.60 lakh crore).

Credit to basic metals and metal products grew 21.9% (Rs 5.38 lakh crore). Within this, lending to iron & steel rose 24.5% (Rs 3.71 lakh crore).

Lending to construction rose 24.4% (Rs 1.94 lakh crore), according to the RBI's sectoral deployment data.

While segments such as housing and vehicle loans sustained double-digit growth, credit card outstanding and loans against gold jewellery decelerated.

Infrastructure

Credit to infrastructure registered a YoY growth of 10.2% as on the fortnight ended 31 July 2026 (outstanding of Rs 15.13 lakh crore), compared to 3.4% during the corresponding fortnight of the previous year (25 July 2025). 

Within this segment, credit to ports rose 58.4% (Rs 8,719 crore) while power grew by 21.6% (Rs 8.69 lakh crore). Lending to roads declined 0.8% (Rs 3.42 lakh crore) and also to telecommunications by 13.2% (Rs 96,039 crore). Credit to airports grew 7.7% (Rs 8,933 crore).

Services sector outstanding at Rs 61.97 lakh crore

Lending to NBFCs surged 35.7% YoY in July (outstanding at Rs 21.28 lakh crore), compared to just 3% growth in the corresponding fortnight a year ago. This was led by public financial institutions (PFIs), which leapt 79.5% (outstanding at Rs 3.56 lakh crore) as against a contraction of 2.4% in the year-ago period. Housing finance companies (HFCs), which had also contracted by 0.2%, grew 21% (outstanding at Rs 3.82 lakh crore).

Commercial real estate credit continued to grow at a brisk pace, rising 21.5% YoY in July (outstanding of Rs 6.69 lakh crore), compared to 15.7% a year earlier. 

Credit to trade rose 19.8% (Rs 14.09 lakh crore) while that to computer software increased 43.3% (Rs 52,415 crore).

Personal loans outstanding at Rs 71.83 lakh crore

Loans against gold jewellery drove this segment with an 88.1% YoY rise in July (outstanding at Rs 5.52 lakh crore), though the pace was slower than the 136.4% growth in the corresponding fortnight a year ago.

Within personal loans, credit card outstanding growth slowed to 2.3% (Rs 2.98 lakh crore) in July from 5.6% recorded in the year-ago period and education loan growth to 13.7% (Rs 1.61 lakh crore) from 15%.

Advances against shares and bonds increased by 8.6% (Rs 10,565 crore) compared to 3.3% a year earlier. 

Advances against fixed deposits (including FCNR(B) and NRNR) grew 14.6% (Rs 1.62 lakh crore), compared with 16.9% a year ago.

Vehicle loans rose 18.8% (Rs 7.65 lakh crore), while housing credit (including priority sector housing) grew 11.3% (Rs 34.28 lakh crore).

Consumer durable loans remained almost flat at 0.4% growth (Rs 23,027 crore), indicating a continuing low demand and it had actually contracted 5.8% in the year-ago period.