Bank credit growth accelerates to 16.5 percent
Credit growth at Indian scheduled commercial banks accelerated to 16.5 percent year-on-year in June 2026, up from 9.9 percent a year earlier. The Reserve Bank of India reported broad-based expansion driven by private corporate borrowing and falling lending rates.
Corporate borrowing leads broad expansion
Outstanding credit of scheduled commercial banks grew by 16.5 percent year-on-year at the end of June 2026, compared to 9.9 percent in June 2025.
Borrowing by the private corporate sector drove the pickup, rising 21.1 percent after expanding 7.9 percent a year earlier.
Credit to the public and household sectors expanded by 14.6 percent and 15.2 percent, respectively.
Lending to female individual borrowers increased by 19.7 percent, up from 12.9 percent in June 2025.
Across specific sectors, finance recorded the fastest expansion at 22.4 percent, followed by trade at 18.1 percent, industry at 15.5 percent, agriculture at 15.1 percent, and personal loans at 12.7 percent.
Lending rates ease as term credit expands
Term loans accounted for 64.1 percent of total bank credit and grew by 15.4 percent, up from 8.3 percent in the previous year, while working capital loans expanded by 18.0 percent compared to 13.4 percent in June 2025.
Borrowing costs declined over the period, with the weighted average lending rate on outstanding credit easing by 45 basis points to 9.26 percent from 9.71 percent.
Loans priced below 9 percent reached nearly two-thirds of total credit, up from 54.1 percent.
Broad momentum across sectors
The sharp pickup in corporate borrowing confirms that Indian enterprises are re-leveraging after prolonged caution.
Cheaper financing and expanding term loans reflect genuine investment appetite rather than simple liquidity demand.
This credit expansion displays robust momentum across all borrower segments.