Business
NBFC Credit Accelerates, While Industry and Services Lending Slows
Credit extended by Non-Banking Financial Companies (NBFCs) grew by 14.4% year-on-year in June 2026, driven by robust expansion in retail and agriculture lending. However, credit growth to the services and industrial sectors moderated during the period, according to the Reserve Bank of India (RBI).
The Reserve Bank of India (RBI) has reported that credit extended by Non-Banking Financial Companies (NBFCs) grew by 14.4% year-on-year in June 2026, compared with 11.1% during the corresponding period last year. The data reflects sustained momentum in lending by NBFCs across key sectors of the economy.
According to the RBI, credit to agriculture and allied activities recorded a sharp increase of 17.9%, up from 5.1% a year earlier. Retail lending also accelerated significantly, growing 20.3% compared with 14.3% in the previous year. The strong retail performance was driven by increased demand for housing loans, vehicle loans, and loans against gold jewellery.
In contrast, lending to the services sector moderated to 17.6%, down from 22.4% a year ago. Similarly, credit growth to industry slowed to 6.7% from 10.3%, primarily due to weaker growth in infrastructure financing. The RBI’s data indicates that while consumer and agricultural credit remain strong, industrial and service-sector lending has witnessed a slower pace of expansion.
