Credit flow to commercial sector jumps 15% to Rs. 298 lakh crore (US$ 3.31 trillion): RBI data
- IBEF
- January 23, 2026
Total flow of funds to the commercial sector of India increased 15% year-over-year to Rs. 298 lakh crore (US$ 3.31 trillion) by the end of December 2025, reflecting growth in both traditional bank lending and other funding routes, according to Reserve Bank data. Non-bank sources accounted for about 47% of total credit flow, reflecting their increasing presence in the financial system. Bank credit was pegged at Rs. 202.3 lakh crore (US$ 2.25 trillion), while funding from nonbank channels such as finance company loans, corporate bond issues, and foreign currency borrowings totalled Rs. 95.5 lakh crore (US$ 1.06 trillion). The numbers point to a diversified financing profile that supports business investment and working capital needs across all sectors.
Non-banking financial companies continued to outstrip banks, recording 22% growth in lending against 14.4% for banks year-on-year. Outstanding loans by Non-Banking Financial Company (NBFCs), excluding bank credit, reached Rs. 35.8 lakh crore (US$ 397.8 billion). Meanwhile, non-financial corporate borrowers mobilised Rs. 22.9 lakh crore (US$ 254.4 billion) through corporate bonds. The increasing reliance on capital markets for corporate finance is at the fore. Funding through commercial papers, however, declined 1.2% to Rs. 1.56 lakh crore (US$ 17.33 billion), as higher yields on Central government securities pushed borrowers toward shorter-term bank credit. On a year-to-date basis, total financial resources coming into the commercial sector increased to Rs. 30.8 lakh crore (US$ 342.2 billion) from Rs. 21.3 lakh crore (US$ 237 billion) a year ago, to indicate sustained momentum in credit growth.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
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