Bank credit grows 19.4% in September; services, NBFC lending lead sectoral growth: RBI
Economic Times 1 hr ago·30 Oct 2026, 2:03 pm
The Reserve Bank of India (RBI) reported a robust expansion in bank credit for September, with the total outstanding loans increasing by 19.4% compared to the same period last year. This growth was driven by strong demand in the services sector, which saw a 28.3% rise in credit, alongside significant expansion in lending to Non-Banking Financial Companies (NBFCs), which grew by 41.8%. Industry and personal loan segments also recorded healthy year-on-year growth of 19.5% and 17.3% respectively.
This surge in credit expansion indicates a rebound in economic activity and higher borrowing appetite among businesses and consumers. For investors, this signals a positive outlook for the financial sector, as higher loan volumes typically translate to improved profitability for banks. However, it also raises the possibility of a rise in interest rates in the near future to manage liquidity.
Investors should keep a close watch on the RBI's upcoming monetary policy decisions and the quality of loan growth. While the current data is encouraging, monitoring asset quality and the pace of credit growth will be crucial to gauge the sustainability of this economic momentum.
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