New Delhi, [India] Aug 3 : India's average bank credit growth remained robust in June 2026, supported by healthy retail lending and strong credit flow to non-banking financial companies (NBFCs) and commercial real estate (CRE), according to a report by Haitong Securities India.
The report said overall bank credit, estimated at around Rs 219 trillion, grew 18.6 per cent year-on-year (YoY) in June 2026, while non-food credit expanded 18.3 per cent YoY.
The report stated, "For Jun'26 overall bank credit (~Rs219trn) growth was healthy at 18.6% YoY / 2% MoM and non-food credit growth was healthy at 18.3% YoY."
Retail lending continued to post healthy growth, rising 15.8 per cent YoY, aided by steady housing loan demand along with higher vehicle, jewellery and education loans. However, consumer durable loans remained under pressure, while credit card receivables recorded subdued growth of around 2 per cent.
According to the report, "Retail loans were up by 15.8% YoY led by steady momentum in housing loans and further supported by growth in vehicle, jewel loans & education. Consumer durable loans continue to decline while credit card receivable growth was low at ~2%."
Credit to the services sector increased 21.4 per cent YoY, led by strong lending to NBFCs, which rose about 32 per cent YoY and accounted for nearly 10 per cent of total bank credit. Lending towards commercial real estate also accelerated to around 22 per cent YoY.
The report further noted, "Growth in credit towards services was up by 21.4% YoY led by growth in banks' lending to NBFCs (+32% YoY) comprising ~10% of total bank credit, uptick in lending towards CRE to ~22% YoY."
Industrial credit also remained healthy, growing 19.2 per cent YoY in June 2026, with robust expansion in lending to micro, small and medium enterprises (MSMEs). Credit to micro and small enterprises rose around 23 per cent YoY, while lending to medium industries increased about 30 per cent.
The report said the strong industrial credit growth was primarily driven by higher lending to engineering, infrastructure, petroleum and coal products, basic metals and textiles sectors.