Reserve Bank of India Reports 19.1 Percent Non-Food Credit Growth for September 2026
On October 30, 2026, the Reserve Bank of India released data showing that non-food bank credit in India grew by 19.1 percent year-on-year for the period ending September 30, 2026. This figure marks an increase from the 11.2 percent growth rate recorded during the same period in 2025. The data comes from 41 select scheduled commercial banks, which account for about 95 percent of total non-food credit in the country. Credit growth expanded across all major sectors, including agriculture, industry, services, and personal loans. Bank credit to the services sector led the expansion with a 28.3 percent increase, driven by segments like non-banking financial companies, trade, commercial real estate, transport operators, and professional services. For ordinary readers, these figures provide a clear picture of borrowing trends across the Indian economy, showing how businesses and individuals are accessing bank financing compared to the previous year.
What was announced
The Reserve Bank of India published data on sectoral credit growth for September 2026. Non-food bank credit grew by 19.1 per cent year-on-year for the fortnight ending September 30, 2026, compared to 11.2 per cent a year earlier. The statistics cover 41 scheduled commercial banks representing roughly 95 per cent of all non-food bank credit.
Credit to agriculture and allied activities increased by 19.5 per cent, up from 8.9 per cent in the previous year. Industrial credit also grew by 19.5 per cent, compared to 7.7 per cent previously. Credit to large and medium industries expanded faster, while micro and small industries maintained steady growth. Major industrial sectors seeing growth included infrastructure, basic metals, engineering, chemicals, food processing, and textiles.
Services credit recorded the highest growth at 28.3 per cent, compared to 9.9 per cent last year. Personal loans grew by 17.3 per cent, compared to 11.5 per cent a year ago. Housing and vehicle loans stayed resilient, while advances against fixed deposits accelerated. Growth in loans for education and gold jewellery slowed down compared to the prior year, though it remained strong.
What it means
The data shows that bank lending accelerated across every main economic sector compared to September 2025. Services and industry saw significant jumps in credit uptake, indicating that commercial enterprises took on more debt over the 12-month period.
Borrowing patterns shifted within individual personal loan categories. While people continued taking out housing and vehicle loans at steady rates, more borrowers took advances against fixed deposits. Meanwhile, education loans and gold jewellery loans expanded at a slower pace than they did during the previous year.
What the announcement does not tell us
The Reserve Bank of India release provides raw percentage growth figures, but it leaves out several context details:
- It does not list the absolute rupee amounts of credit extended to any sector.
- It does not state interest rates, default rates, or non-performing asset levels for these loans.
- The release does not explain the underlying economic reasons for the sharp growth in credit to services or industry.
- It does not state whether the growth met internal bank targets or economic forecasts.
How this was written
This analysis was written with AI from the official announcement below, using only facts that announcement states. The quoted wording is Reserve Bank of India Press Releases’s own. Always check the original before acting on anything here.
Data on sectoral deployment of bank credit for the month of September 2026, collected from 41 select scheduled commercial banks (SCBs), which together account for about 95 per cent of the total non-food credit by all SCBs 1 , are set out in Statements I and II . On a year-on-year (y-o-y) basis, non-food bank credit 2 grew by 19.1 per cent as on the fortnight ended September 30, 2026, compared to 11.2 per cent during the corresponding fortnight of the previous year (i.e., October 03, 2025). Highlights of the sectoral deployment of bank credit as on the fortnight ended September 30, 2026, are gi
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