Bank credit to industry registers 17.5% growth in May: RBI
The Reserve Bank of India (RBI) in its latest data has showed that bank credit to the industrial sector grew 17.5 per cent year-on-year (y-o-y) by the end of May 2026, a sharp acceleration from 5.3 per cent recorded in the corresponding period last year, as advances to large industries grew at an accelerated pace, along with sustained healthy expansion in the MSE sector. Non-food bank credit accelerated 17.4 per cent y-o-y in the fortnight ended May 31, 2026, as compared to 8.8 per cent during the corresponding fortnight of the previous year (May 30, 2025). Credit to agriculture and allied activities also strengthened, growing 14.9 per cent against 7.5 per cent a year earlier.
The RBI said while credit to micro and small and medium industries sustained robust expansion, large industries grew at an accelerated pace. Among major industries, credit to infrastructure, all engineering, textile, construction, petroleum, coal products and nuclear fuels and chemical and chemical products marked buoyant growth. However, rubber, plastic and their products and wood and wood products segments recorded relatively subdued growth.
Further, it said credit to personal loans segment also maintained strong momentum, recording a 15.4 per cent year-on-year growth as against 11.1 per cent a year ago. Vehicle and housing loans continued to post steady growth, although credit card outstanding moderated. Loan to the services sector registered a growth rate of 20.4 per cent as compared with 8.4 per cent in the corresponding fortnight last year, supported by accelerated growth in segments such as non-banking financial companies (NBFCs), commercial real estate, and trade.
