Bank Credit Growth Climbs to 14.1% in March 2026, RBI BSR-1 Data Shows

The Reserve Bank of India has released the Annual Basic Statistical Return (BSR)-1 publication on credit extended by scheduled commercial banks as on the end of March 2026. The BSR-1 is the central bank's most detailed snapshot of where bank loans go in the country and how borrowers are placed in terms of location, occupation, account type and interest rate.

The headline finding is that overall bank credit growth on a year-on-year basis rose to 14.1 per cent at the end of March 2026, up sharply from 11.1 per cent a year earlier. This points to a stronger appetite for borrowing across the economy and matches the easier monetary stance that the RBI pursued during 2025-26.

The cost of borrowing also fell during the year. The share of loans carrying interest rates below 9 per cent climbed to 64.2 per cent of total credit by March 2026, up from 43.9 per cent a year ago. This is a direct sign that policy rate cuts and easier liquidity were passed on to borrowers during the year.

Credit grew in double digits across rural, semi-urban, urban and metropolitan branches. Metropolitan branches still dominate, accounting for 58.2 per cent of total lending, followed by urban at 17.9 per cent, semi-urban at 14.5 per cent and rural at 9.4 per cent. Among bank groups, private sector banks saw their credit growth pick up to 12.3 per cent from 9.5 per cent, while public sector banks recorded growth slightly above the headline figure. Small finance banks continued their fast expansion and now hold 1.6 per cent of total bank credit.

Personal loans, which include housing, education, vehicle, credit card and consumer durable loans, grew at 12.9 per cent year-on-year. This is a moderation, as personal loan growth slipped below overall credit growth for the first time in several years. Even so, personal loans still make up 30.7 per cent of all bank credit.

Loans to private corporates grew much faster at 15.5 per cent, and now account for more than one fourth of total bank credit. Credit to agriculture grew at 14.4 per cent and to industry at 12.0 per cent, both meaningfully higher than the previous year. Term loans, which finance longer-tenure projects, made up 62.8 per cent of all bank credit, and 80.2 per cent of these carried interest rates below 10 per cent.

For the first time, the BSR-1 release also includes district-level data on outstanding credit to individuals split by gender. The share of female borrowers in individual credit edged up to 24.7 per cent from 23.8 per cent, a small but watched indicator of financial inclusion.