MUMBAI: Banking credit to industry remained robust increasing 19.2% year on year due to broad based growth from both large and small companies. Personal loan growth also remained strong growing 16% year on year compared to 12% a year ago, latest RBI sectoral numbers for the month ended June 2026 showed.
Loan growth to all three sectors within industries was strong with credit to medium enterprises growing the fastest at 30% year on year at the end of June 2026 compared to 13% a year ago. Loans to large companies, which increased 17% year on year up from the 2% growth seen a year ago and credit to micro and small enterprises increasing 23% compared to a 19% growth recorded a year earlier.
Petroleum, coal products and nuclear fuels with a year-on-year growth of 49%, and gems and jewellery with a 33% growth year on year were among the fastest growing sectors. Among the large sectors engineering with a 38% year on year growth, infrastructure with a 11% growth, food processing with a 20% growth were among the fastest growing sectors within industry.
In the person loan segment loan against gold jewellery which includes certain agriculture loans remained the fastest growing sectors increasing 93% year on year. Vehicles loans with a 17% growth was the second fastest in the personal loan segment. Credit card outstanding growth decelerated to 2% compared to the 7% recorded a year ago.
Advances against fixed deposits including FCNR (B) deposits increased 11% year on year compared to 15% growth recorded last year. Growth in education loans also remained strong at 13% versus 14% recorded a year ago.
Within the services sector which grew 21%, credit to non banking finance companies remained strong growing 32% versus 3% recorded a year ago, led by lending to public financial institutions, RBI data showed.
Source: The Economic Times
