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RBI reported that bank credit growth year-on-year accelerated to 16.5% by the end of June 2026, a rise from 9.9% the previous year. Bank borrowings by the private corporate sector increased to 21.1% at the same time, up from 7.9% a year earlier. Meanwhile, credit to the public and household sectors grew by 14.6% and 15.2%, respectively, in June 2026.
Moreover, credit to female individual borrowers jumped by 19.7% in June 2026 compared to 12.9% in June 2025. Term loans, which made up 64.1% of total bank credit, increased by 15.4%, up from 8.3% last year. Working capital loans also saw growth, rising to 18.0% from 13.4%.
Overall, credit growth was strong across key sectors, including trade (18.1%) and finance (22.4%). Agriculture saw growth at 15.1%, industry at 15.5%, and personal loans at 12.7%. The share of loans with interest rates below 9% rose to almost two-thirds in June 2026, while the weighted average lending rate decreased by 45 basis points to 9.26% from 9.71% the previous year.
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