Following the 125-basis-point RBI rate cut, India’s outstanding commercial loan stock reached Rs 300 lakh crore as of January 2026, an average annual growth of 14.7%. The incremental loan growth in the first ten months of the fiscal year was nearly 35%, with banks increasing their loan share from non-banking sources such as NBFCs.
Highlights
- This growth has been driven by increased loan demand after the Reserve Bank of India’s (RBI) 125-basis-point policy rate cuts over the past year, which made borrowing cheaper.
- Outstanding commercial sector credit in India crossed ₹300 lakh crore by the end of January 2026, marking a 14.7% year-on-year rise.
- Incremental credit growth in the first 10 months of the current fiscal year rose by ~35%, showing strong recent loan uptake.
- Banks have regained market share in lending, widening the gap with non-bank sources of credit such as NBFCs, housing finance firms, bonds, and equity.
- Among lending sources, bank credit contributed a larger share, while non-bank finance companies still showed strong growth.
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March 12, 2026
