Mumbai (Maharashtra) [India], August 2 : Corporate lending and personal loans together accounted for nearly two-thirds of incremental bank credit growth in the April-June quarter of FY27, with sectors such as petroleum, infrastructure, engineering and chemicals leading corporate borrowing, according to an SBI Research pre-Monetary Policy Committee (MPC) report.
The report said corporate lending and personal loans contributed around 63 per cent of incremental bank credit growth during the quarter.
"The sectoral incremental credit growth data during Apr-June, 2026 indicates that 'industry and personal loans' has contributed ~63% of the incremental credit growth," SBI Research said in the report.
According to the report, lending to companies rose by Rs 1.87 lakh crore during the April-June period, with nearly half of the incremental corporate credit flowing to four sectors.
"Among industry, 'Petroleum, Coal Products and Nuclear Fuels', 'Infrastructure (especially Power)', 'Chemicals', and 'All Engineering' are contributing ~50% of the incremental industry credit," the report said.
The report showed that petroleum, coal products and nuclear fuels received the highest incremental credit of Rs 255 billion, followed by engineering (Rs 249 billion), infrastructure (Rs 217 billion) and chemicals (Rs 208 billion). Food processing, basic metals, transport equipment, construction and electronics also recorded notable growth in bank lending.
On the retail side, loans against gold jewellery emerged as the single largest contributor to personal loan growth.
"Among personal loans, 42% (Rs 742 bn out of Rs 1,738 bn) is contributed by 'loans against gold jewellery' alone," the report said.
The report further showed that overall gross bank credit increased by Rs 5.67 lakh crore during the April-June quarter. On an annual basis, credit to corporates classified under the industry segment grew 19.2 per cent, while personal loans rose 15.8 per cent, indicating sustained demand from both businesses and households.
SBI Research said the sectoral credit trends indicate that business investment and retail borrowing remained the principal drivers of bank lending growth in the first quarter of FY27.