India commercial credit rises 55.4% to ₹17.5L/cr, non-food loans more-than-doubled
India's commercial sector just got a big boost, with total financial resources flowing to the commercial sector from banks and non-bank sources shooting up 55.4% to ₹17.5 lakh crore in the first five months of FY27 (April-August).
Most of this growth came from non-food loans, which more than doubled compared with last year.
The Finance Ministry's latest report says businesses are borrowing more as credit demand across industries and services and improving loan demand expectations.
Corporate bond issuance ₹0.3L/cr vs ₹1.5L/cr
While bank loans soared, companies issued way fewer corporate bonds, just ₹0.3 lakh crore versus ₹1.5 lakh crore last year, mainly because rising yields made bonds less attractive.
Credit demand was up across the board: medium-sized industries led with a 31.8% jump, micro and small industries grew by 23%, and even large industries saw solid gains.
The services sector also saw a healthy rise, especially in shipping and software.
The Finance Ministry sounds optimistic that this lending momentum will keep going through FY27.