New Delhi [India], August 31 (ANI): Bank credit growth accelerated sharply in July 2026, with non-food bank credit rising 19.1 per cent year-on-year as of the fortnight ended July 31, according to data released by the Reserve Bank of India (RBI).

The growth was nearly twice the 9.9 per cent recorded during the corresponding fortnight of the previous year, pointing to a broad-based increase in bank lending across key segments of the economy.

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 RBI's sectoral deployment of bank credit data, collected from 41 select scheduled commercial banks accounting for about 95 per cent of total non-food credit by all scheduled commercial banks, showed strong credit growth across agriculture, industry, services and personal loans.

Credit to industry recorded a 20 per cent year-on-year growth in July, sharply higher than the 6.5 per cent growth recorded during the corresponding period last year.

RBI also shared that within the industrial sector, credit growth was buoyant in infrastructure, basic metal and metal products, all engineering, chemical and chemical products, petroleum, coal products and nuclear fuels, and textiles.

Credit to the services sector recorded the strongest growth among the major segments, rising 22.9 per cent year-on-year in July, compared with 10.2 per cent a year earlier.

The RBI said the acceleration in services credit was supported by segments such as non-banking financial companies (NBFCs), trade and commercial real estate.

Agriculture and allied activities also witnessed a significant acceleration in bank credit growth. Credit to the sector grew 17 per cent year-on-year in July, compared with 7.3 per cent during the corresponding fortnight of the previous year.

Credit growth in the personal loans segment also strengthened to 16.2 per cent, compared with 11.9 per cent a year ago. Housing and vehicle loans continued to record double-digit growth.

However, some segments of personal lending showed moderation. Credit card outstanding and loans against gold jewellery recorded slower growth during the period.

The latest data showed that the acceleration in bank credit was not limited to one particular part of the economy, with lending to industry, services and agriculture all registering significantly higher growth than a year earlier.

The RBI data also showed that large and medium industries recorded accelerated credit growth, while credit growth to micro and small industries remained steady.

The sharp rise in non-food bank credit growth from 9.9 per cent a year earlier to 19.1 per cent in July comes alongside stronger lending growth across several key sectors, particularly industry and services. (ANI)