NBFC credit growth jumps to 14.4% in June, led by retail and agriculture
Non-banking financial companies (NBFCs) saw credit growth accelerate to 14.4 per cent in June 2026, up from 11.1 per cent a year ago, according to RBI data released on Saturday. Agriculture credit…
The Story in Brief
Non-banking financial companies (NBFCs) saw credit growth accelerate to 14.4 per cent in June 2026, up from 11.1 per cent a year ago, according to RBI data released on Saturday. Agriculture credit surged 17.9 per cent versus 5.1 per cent last year, while retail loans rose 20.3 per cent compared to 14.3 per cent. Within retail, housing, vehicle and gold loans led the expansion.
Industrial credit growth, however, moderated to 6.7 per cent from 10.3 per cent, pulled down by weak infrastructure lending. Services sector credit slowed to 17.6 per cent from 22.4 per cent, with trade and transport segments easing despite strong commercial real estate growth. The data covers major NBFCs and housing finance companies that account for about 87 per cent of total NBFC credit.
The Indian Opinion
The RBI data is a tonic against hand-wringing over a 'credit slowdown'. NBFCs are lending more, not less. Yet the lazy narrative of a monolithic 'consumption crash' persists, ignoring that retail loans are booming at 20.3 per cent. The real story is beneath the headline: infrastructure credit is dragging industry down. Watch the next quarterly GDP data. If industrial investment remains sluggish despite strong lending elsewhere, the problem is capex, not credit availability.
Source: rbi.org.in
This story was synthesised by AI from the source linked above.
