India’s banking credit growth rebounded sharply to 14.6 per cent year-on-year in the fortnight ended January 31, signalling renewed momentum in lending activity, according to data released by the Reserve Bank of India. Total bank credit stood at ₹204.75 trillion, expanding ₹3.41 trillion (1.7 per cent) during the period. Deposits remained robust as well, rising 12.5 per cent Y-o-Y to ₹248.81 trillion, with a sequential increase of ₹3.82 trillion (1.6 per cent).
The acceleration follows a relatively muted start to 2026, when credit growth had eased to 13.1 per cent in the fortnight ended January 15. The latest uptick brings growth back in line with the 14.5 per cent expansion recorded at the end of December 2025.
Improved credit offtake has been supported by GST rationalization, RBI rate cuts and rising wholesale credit demand, as elevated corporate bond yields narrowed the gap between market and bank borrowing costs.
India’s largest lender, State Bank of India, has revised its FY26 credit growth guidance upward to 13–15 per cent. Corporate lending is expected to remain strong, while retail, agriculture and MSME segments continue to drive expansion, reflecting growing business confidence and improving trade prospects.
India’s Credit Cycle Gains Pace with 14.6% Growth
