Mumbai (Maharashtra) [India], September 30 (ANI): Bank credit growth accelerated sharply in August, with lending to businesses and services picking up pace alongside continued growth in retail loans, according to data released by the Reserve Bank of India (RBI) on Wednesday.

Non-food bank credit grew 18.8 per cent year-on-year as of August 31, 2026, compared with 10.2 per cent in the corresponding period last year, RBI data showed. Non-food credit broadly captures bank lending to businesses and households, excluding loans linked to food procurement.

The acceleration was broad-based, with lending to both industry and services growing significantly faster than a year earlier, indicating stronger credit demand across major parts of the economy.

Credit to industry grew 18.2 per cent, up from 7 per cent in the corresponding period last year. RBI said lending to large and medium industries accelerated, while credit to micro and small industries continued to expand steadily.

Among major industrial segments, infrastructure, engineering, metals, chemicals, food processing, textiles, construction and petroleum-related industries recorded strong credit growth.

The services sector recorded the fastest growth among the broad categories, with bank credit rising 24.3 per cent, compared with 10.3 per cent a year earlier.

RBI said the increase was supported by strong lending to non-banking financial companies (NBFCs), trade, professional services and commercial real estate.

Agriculture credit also strengthened, growing 17.2 per cent year-on-year against 7.6 per cent in the corresponding period of the previous year.

Meanwhile, personal loans grew 16.9 per cent, compared with 11.9 per cent a year earlier. Housing and vehicle loans continued to record double-digit growth, while growth in credit card outstanding and loans against gold jewellery slowed.

The RBI data are based on figures from 41 scheduled commercial banks.

The latest numbers show that the pickup in bank lending is not being driven only by household borrowing, with stronger credit growth visible across industry and services as well. (ANI)