The RBI’s latest State of the Economy report puts the total at about 2.38 times the ₹4.48 lakh crore recorded a year earlier. The figures point to a sharp rise in financing reaching businesses, with banks contributing a much larger amount than in the comparable period.

Non-food bank credit reached ₹6.69 lakh crore by July 31, against ₹73,000 crore a year earlier. This category covers lending to businesses and individuals but leaves out loans to government agencies for procuring food grains. Non-bank channels, including domestic markets and overseas investors, contributed ₹3.96 lakh crore, up 5.31%. The RBI also noted an improvement in foreign direct investment.

Deposit collection has helped moderate the incremental credit-deposit ratio, which tracks the relationship between additional lending and deposits. However, lending was still expanding faster: as of July 31, 2026, bank credit showed annual growth of 19.3%, compared with 15.4% for deposits.

Loan growth was spread across several sectors. Agriculture lending accelerated, while large companies supported industrial credit growth. Demand in services came from NBFCs, trade and commercial property businesses. Personal lending also picked up in June, with housing and gold loans leading the increase.