What changed
Non-food bank credit growth accelerated sharply to 17.4% YoY in May 2026 from 8.8% in May 2025. Industry credit jumped to 17.5% from 5.3%, services to 20.4% from 8.4%, and agriculture to 14.9% from 7.5%. Personal loans grew 15.4% versus 11.1% a year ago, but credit card outstanding decelerated.
What it means for you
Banks are seeing broad-based demand revival, especially in industry and services. The slowdown in credit card outstanding growth suggests cautious consumer spending or tighter underwriting. NBFC and real estate segments show accelerated growth, signaling continued credit appetite.
What you must do
- Review sectoral exposure limits to capture growth in infrastructure, engineering, and NBFCs.
- Monitor credit card portfolios for early signs of stress given deceleration.
- Align lending strategies with robust demand in agriculture and services.
- Assess liquidity buffers to support sustained credit expansion.
Who it affects
All scheduled commercial banks, NBFCs, Infrastructure and engineering firms, Credit card issuers
What drove the 17.4% growth in non-food credit?
Industry credit grew 17.5% YoY, led by infrastructure, engineering, and textiles. Services rose 20.4%, supported by NBFCs and commercial real estate. Agriculture grew 14.9%.
Why did credit card outstanding decelerate?
The source notes deceleration in credit card outstanding growth, but does not specify reasons. It may reflect cautious consumer behavior or tighter bank policies.
How was the data collected?
Data from 41 select SCBs covering ~95% of total non-food credit, as of the last reporting fortnight (end-May 2026) under the Banking Laws (Amendment) Act 2025.