Bank Non-Food Credit Growth Rises to 15.9% in FY 2025-26

Scheduled Commercial Banks (SCBs) in India recorded non-food credit growth of 15.9% during the financial year 2025-26. Non-food credit refers to all bank loans except those given to the Food Corporation of India for buying foodgrains, and is a key measure of lending to the wider economy.

This was a sharp rise from the previous year, when the growth rate stood at 10.9%. The increase points to stronger demand for loans across the economy.

Credit grew across the industrial, agricultural and services sectors. Industrial lending expanded mainly in infrastructure and manufacturing, while agriculture gained from better rural consumption and wider access to formal credit. The services sector grew on the back of non-banking financial companies (NBFCs), trade and commercial real estate.

Higher non-food credit growth usually signals rising economic activity, as businesses and individuals borrow and invest more. It also reflects stronger lending momentum in the banking sector, an important topic for banking and economy aspirants.