Bank Credit Grew 15.9% in FY 2025-26; Services Up 19%

Bank credit grew 15.9% in FY26

Battle Brief

Non-food credit of scheduled commercial banks grew 15.9% in FY 2025-26, up from 10.9% a year earlier, the Finance Ministry said on 5 May 2026. Outstanding credit reached ₹212.9 lakh crore. Services credit grew 19%, personal loans 16.2%, agriculture 15.7% and industry 15%. Micro and small industry credit jumped 33.1%.

Fact File

Growth: 15.9% non-food credit, FY 2025-26 (10.9% a year earlier)
Outstanding: ₹212.9 lakh crore (March 2026); up ₹29.2 lakh crore
Services: 19.0% (28% share of credit)
Personal loans: 16.2% (33% share)
Agriculture: 15.7% (10.4% earlier)
Industry: 15.0%; micro and small 33.1%; medium 21.7%

In the news

Bank credit growth in FY 2025-26: what happened?

Credit growth tells you whether firms and households are borrowing to spend and invest. FY26 saw a broad pick-up across all sectors.

Services growth led by NBFCs, trade and commercial real estate.
Personal loans: vehicle and gold loans strong; housing steady.
From 31 December 2025, the last reporting fortnight means the last day of the month (Banking Laws (Amendment) Act 2025).

Back Story

What is non-food credit?

Bank credit to the economy other than food credit (lending for food procurement). It is the main measure of credit demand.

Why examiners care

Why does bank credit growth in FY 2025-26 matter?

Economy: Broad-based demand for credit.
MSMEs: Sharp rise in small-industry credit.

Exam Radar

What can Prelims ask on bank credit growth in FY 2025-26?

FY 2025-26 non-food credit growth 15.9%; outstanding ₹212.9 lakh crore.
Banking Laws (Amendment) Act 2025 changed the last reporting fortnight to month-end.

How to use this in Mains

GS-III Indian economy: mobilisation of resources, banking and inclusive growth

As per PIB (2026-05-05): scheduled commercial bank credit grew 15.9% in FY 2025-26; farm credit growth rose to 15.7% (10.4% a year ago) and industrial credit to 15% (8.2%), led by MSME lending.
Credit growth is turning up, a sign of rising demand.

Quotable data point
Scheduled commercial bank credit grew 15.9% in FY 2025-26.
PIB: Finance: bank credit FY26, 5 May 2026

Practice MCQs

Original practice questions (not PYQs).

Practice · UPSC

In FY 2025-26, credit to micro and small industries grew by about

Answer (d) & explanation

PIB (Finance), 5 May 2026.

Quick questions

Questions students ask about this

How fast did bank credit grow in FY 2025-26?

15.9%, compared with 10.9% a year earlier.

Which sector grew fastest?

Services, at 19.0%.

What was total outstanding credit in March 2026?

₹212.9 lakh crore.