Economy 25 May 2026

Non-Food Bank Credit Grew 15.9% Year-on-Year in March 2026: RBI

RBI data shows non-food bank credit grew 15.9% year-on-year as of end-March 2026, signalling continued credit demand across sectors.

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Data released by the Reserve Bank of India on the sectoral deployment of bank credit shows that non-food bank credit grew 15.9% year-on-year as of the fortnight ended 31 March 2026. The data is collected from 41 select scheduled commercial banks that account for about 95% of total non-food credit.

Sectoral deployment data shows how much credit flows to agriculture, industry, services, and personal loans. It is a key indicator of economic activity, because rising credit usually signals higher investment and consumption.

'Non-food credit' excludes loans given to the Food Corporation of India for foodgrain procurement, and so reflects lending to the rest of the economy. Strong credit growth supports activity, though the RBI watches it to ensure lending stays healthy.

Key Points to Remember

  • Non-food bank credit grew 15.9% YoY (fortnight ended 31 March 2026)
  • Data from 41 SCBs (~95% of non-food credit)
  • Sectoral data covers agriculture, industry, services, personal loans
  • Non-food credit excludes FCI foodgrain procurement loans
  • Key indicator of investment and consumption

Exam Relevance

Relevant for UPSC Prelims (Economy — Banking, Credit), Banking exams.

UPSC BANKING
bank-credit rbi non-food-credit economy