Industry Odisha Bureau, Aug 12: With India’s current bank credit growth being recorded around 18.6% year-on-year (YoY) in June 2026, and the credit growth having crossed 17% for the fortnight ending July 15 this year (a rate claimed to have been not seen in two years), financial analysts and experts in money matters have reportedly been optimistic of a robust credit revival.
Media reports, citing Haitong Securities India, have stated that, “Overall bank credit to the tune of Rs 219 trillion grew 18.6% YoY in June 2026, with non-food credit up 18.3% YoY. The Reserve Bank of India (RBI)’s sectoral data shows strong expansion across segments, such as: corporate credit standing at +20.4% YoY in June 2026 driven by a a shift from bond markets to banks, higher working capital needs, and more NBFC lending, retail credit at +15.8% YoY with steady housing, vehicle, and education loans, MSME lending at +20.5% YoY, agriculture loans at +16.8% YoY, and services sector credit at +21.4% YoY led by NBFC lending (+32% YoY) and commercial real estate (+22% YoY).”
Highlighting the key drivers, media reports citing opinions of financial experts and analysts, have also added that, “The corporate demand surged from the bond market outflows and NBFC financing, retail and MSME lending got supported by consumption and business activities, government schemes like the ‘Emergency Credit Line Guarantee Scheme (ECLGS)’ added incremental support, while Indian economy has also witnessed healthy sectoral demand in agriculture, industry and services.”
British multinational bank HSBC has reportedly expected “India’s FY27 credit growth to average 14% YoY, up from 12% earlier, but H2 growth to ease from 18% to 14% due to a high base effect and potential corporate loan slowdown.”
N.B: ‘H2 growth’ in economics refers to the economic growth rate measured over the second half of a fiscal year, typically the period from July to December in India’s calendar-based fiscal year.
American financial services firm Jefferies Financial Group has also reportedly noted “India’s domestic credit growth at 17-18% YoY, the highest in over a decade with corporate lending at 20%.”
