NewKerala.com

Bank Credit to Non-Food Sectors Surges 14.3% in February: RBI Data

Non-food bank credit growth accelerated to 14.3% year-on-year in the fortnight ending February 28, 2026, a significant increase from 11.1% a year ago. The industrial sector saw a strong rebound with credit growth of 13.5%, driven by infrastructure, engineering, and chemicals. The services sector led the expansion with 16.3% growth, supported by lending to NBFCs and commercial real estate. Personal loans also maintained robust momentum at 15.2%, with housing and vehicle loans showing steady to sharp expansion.

Key Points: RBI: Non-Food Bank Credit Grows 14.3% in Feb 2026

  • Non-food credit growth up to 14.3%
  • Industry credit growth nearly doubles to 13.5%
  • Services sector leads with 16.3% expansion
  • Personal loans grow at 15.2%
2 min read

Bank credit to non-food sectors grows 14.3% in Feb: RBI

RBI data shows non-food bank credit growth accelerated to 14.3% in Feb 2026, driven by industry, services, and personal loans. Key sectoral trends revealed.

"Credit to industry recorded a y-o-y growth of 13.5 per cent, compared with 7.5 per cent in the corresponding fortnight of last year. - RBI"

New Delhi, March 30

Non-food bank credit grew by 14.3 per cent year-on-year in the fortnight ended February 28, 2026, up from 11.1 per cent in the corresponding period last year, according to data released by the Reserve Bank of India on Monday.

The RBI said the data is based on information collected from 41 select scheduled commercial banks, which account for about 95 per cent of the total non-food credit extended by all such banks.

"On a year-on-year (y-o-y) basis, non-food bank credit grew by 14.3 per cent as on the fortnight ended February 28, 2026, compared to 11.1 per cent during the corresponding fortnight of the previous year," the central bank said in a press release.

Credit to the agriculture and allied activities sector also recorded steady growth during the period.

"Credit to agriculture and allied activities registered a y-o-y growth of 12.3 per cent vis-a-vis 11.4 per cent in the corresponding fortnight of the previous year," the RBI said.

"Credit to industry recorded a y-o-y growth of 13.5 per cent, compared with 7.5 per cent in the corresponding fortnight of last year," the release stated.

The central bank added that the expansion was driven mainly by sectors such as infrastructure, engineering, chemicals, petroleum-related products and textiles.

Services sector credit growth also strengthened during the period.

"Credit to services sector registered a growth rate of 16.3 per cent y-o-y (11.7 per cent in the corresponding fortnight of the previous year), supported by higher growth in segments such as banks' credit to non-banking financial companies (NBFCs) and commercial real estate," the RBI said.

Meanwhile, lending under the personal loans category also maintained strong momentum.

"Credit to personal loans segment recorded a y-o-y growth of 15.2 per cent, as compared with 11.7 per cent a year ago," the RBI said.

The central bank noted that the housing segment continued to see steady growth, while vehicle loans and loans against gold jewellery sustained sharp expansion.

- ANI

Share this article:

Reader Comments

R
Rahul R
Good to see agriculture credit growing at 12.3%. Our farmers need consistent financial support. However, I hope this credit is actually reaching the small and marginal farmers and not just the big agri-businesses. The devil is in the details.
A
Aman W
Personal loans growing at 15.2%... while it shows consumer confidence, it's also a bit worrying. Are people taking loans for needs or wants? With vehicle loans and gold loans also expanding sharply, we must be cautious about household debt levels.
S
Sarah B
The infrastructure and engineering sectors driving growth is excellent. This is foundational for long-term development. Hope the credit flow to textiles also helps our MSMEs and boosts exports. Solid numbers from the RBI.
K
Karthik V
As someone in the NBFC space, the 16.3% growth in services credit, supported by banks' lending to NBFCs, is very positive. It means we can reach more customers, especially in tier 2 and 3 cities. The economy is on the right track. 💹
N
Nikhil C
The growth is impressive, but I have a respectful criticism. This data is from 41 big banks. What about the smaller banks and cooperative institutions? They play a huge role at the grassroots. A more comprehensive picture would be helpful.

We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.

Leave a Comment

Minimum 50 characters 0/50