India’s corporate sector is showing renewed strength, with bank lending to industries recording a sharp rise, according to the latest data released by the Reserve Bank of India (RBI).

Strong Growth in Industrial Lending
Bank credit to the industrial sector grew by 13.5% year-on-year in the fortnight ended February 28, 2026, nearly doubling from 7.5% growth recorded in the same period last year. The RBI attributed this surge to increased lending across key sectors such as infrastructure, engineering, chemicals, petroleum products, and textiles.

The data is based on inputs from 41 major scheduled commercial banks, which together account for about 95% of total non-food credit in the banking system.

Overall Credit Expansion Gains Pace
Non-food bank credit registered a growth of 14.3% year-on-year during the same period, compared to 11.1% a year earlier. Within the industrial segment, lending to micro, small, and medium enterprises (MSMEs) continued to grow at a healthy pace, while large industries also saw a notable rise in credit uptake.

Services and Retail Segments Also Expand
The services sector recorded a robust 16.3% growth in credit, up from 11.7% last year. This was largely driven by higher lending to non-banking financial companies (NBFCs) and commercial real estate.

Retail lending remained strong as well, with personal loans growing by 15.2% year-on-year. Housing loans maintained steady growth, while vehicle and gold loans continued to expand rapidly.

Agriculture Credit Sees Moderate Rise
Loans to agriculture and allied activities increased by 12.3%, slightly higher than 11.4% recorded in the corresponding period last year, indicating stable rural credit demand.

Investment Cycle Showing Signs of Revival
The broad-based increase in credit across sectors suggests improving business confidence and a potential revival in private investment. With strong momentum in infrastructure and core industries, the data points to a positive outlook for economic activity in the coming months.