Year-on-year growth in non-food bank credit accelerated to 19.1% as of September 30, 2026, up from 11.2% in the same period of 2025.
Robust Growth in Non-Food Bank Credit
Data from 41 select scheduled commercial banks, representing about 95% of total non-food credit, shows that year-on-year growth in bank credit reached 19.1% as of the fortnight ended September 30, 2026. This marks a significant acceleration from the 11.2% growth recorded in the corresponding fortnight of 2025.
The surge in credit deployment reflects revival in industrial and consumer demand, supported by easing financial conditions and government infrastructure spending. Sectoral analysis will reveal trends in priority lending, especially to MSMEs, agriculture, and affordable housing. The Reserve Bank continues to monitor credit quality amid rapid expansion.
Legal advisors in banking and finance must assess implications for credit documentation, collateral structuring, and recovery mechanisms under the Securitisation Act. Sustained high credit growth may also attract regulatory scrutiny under RBI’s sectoral exposure norms.
