The Finance Ministry has said that Scheduled Commercial Banks (SCBs) in India have registered a significant 15.9 per cent credit growth in fiscal year 2025-26 (FY26), indicating strong economic activity and persistent demand for loans across several sectors. The total outstanding credit stood at Rs 212.9 lakh crore as of March 2026, an increase of Rs 29.2 lakh crore over the previous year.
The Ministry attributed the growth to a low interest rate environment, continued government-led capital expenditure and timely structural reforms that have supported private investment and boosted domestic credit demand. The credit growth in FY26 remained broad-based, led by the services sector, followed by personal loans, agriculture and industry.
In terms of sector wise, the credit growth in the agriculture and allied sector accelerated to 15.7 per cent in FY26, up from 10.4 per cent a year ago, supported by sustained rural demand and improved credit flow. In the industrial sector, credit growth expanded to 15 per cent in FY26 from 8.2 per cent a year ago, driven by strong momentum in MSME lending. Besides, services sector credit, that contributes 28 per cent to the overall credit, recorded the highest growth at 19 per cent in FY26 as compared to 12 per cent in the previous year, driven by demand from non-banking financial companies, trade and commercial real estate segments. The personal loan segment, with a 33 per cent share in overall credit, also witnessed steady growth of 16.2 per cent in FY26 as compared to 11.7 per cent in FY25.
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