Banks – Monthly Update – Credit growth led by corporate, MSME and gold
Published on 05 Nov 2026
Non-food credit accretion continued to improve, growing by 19% YoY to INR229trn in Sep’26 (+18% in Jun’26), supported by sustained growth across corporate (+24%), MSME (+24%) and agri (+20%). Corporate credit growth at ~24% YoY has rallied over last year (+5.1% in Jun’25), and bankers have attributed the same to companies shifting borrowings from bond markets to banks due to hardening of yields. NBFC credit has rebounded sharply over the last year, growing by 41.8% YoY (3.7% in Sep’25). Retail accretion of 18.5% YoY was cushioned by continued strong run-rate in gold. Excluding gold, retail growth improved to 13.6% YoY (12% in last 3 quarters). Unsecured growth at 14% YoY has been consistently increasing over last year (+6.7% in Sep’25). Driven by these factors, system credit could increase by 15-17% YoY in Mar’27.
