The financial resources flow to India's commercial sector grew 138% year-on-year to Rs 10.65 lakh crore in the first four months of 2026-27, with a significant boost in non-food bank credit being the primary contributor, the Reserve Bank of India's (RBI) State of the economy report in August 2026 showed.

Key Highlights

• The financial resource flow to the commercial sector surged by 138% YoY to Rs 10.65 lakh crore in April-July.
• The non-food bank credit rose by over nine times to Rs 6.69 lakh crore, RBI said.

During the same period in 2025-26, the total flow was Rs 4.48 lakh crore. The non-food bank credit increased by Rs 6.69 lakh crore over the same period a year ago, which was Rs 73,000 crore, marking it as about nine times higher. Non-bank sources' funds rose from Rs 3.76 lakh crore to Rs 3.96 lakh crore.

Foreign Sources Drive Non-Bank Funding

The foreign sources provided Rs 2.08 lakh crore non-bank funding as compared with Rs 1.39 lakh crore a year before, while the domestic sources shrank to Rs 1.88 lakh crore from Rs 2.37 lakh crore. The overall rise in the financial resources was attributable to the rise in non-food bank credit and increased foreign direct investment in the country, the RBI said.

Non-Bank Sources Expanded Sharply

Outstanding credit from non-banks also grew by 14% year-on-year to reach Rs 103.53 lakh crore. In this, foreign sources expanded at a faster rate of 18.9% to Rs 27.10 lakh crore while domestic sources increased by 12.4% to Rs 76.44 lakh crore.

The RBI said bank credit remained robust across major sectors in June. Agriculture credit accelerated, while industrial credit sustained its momentum, aided by an expansion in lending to large industries. Credit to services strengthened, with NBFCs, trade and commercial real estate contributing to the expansion.

Personal Loans and NBFC Credit Show Continued Strength

Growth of personal loans also picked up during the month, supported by housing loans and loans against gold jewellery, indicating continued strength in retail credit demand.

NBFCs continued to register double-digit credit growth across major sectors in June, except industry. Credit to agriculture expanded at a robust pace, although industrial credit growth moderated, largely because of a slowdown in infrastructure lending.

NBFC credit to the services sector remained strong, with commercial real estate recording buoyant expansion, while retail lending accelerated, supported by housing, vehicle and loans against gold jewellery. RBI data released separately for June also showed continued strength in these segments.

Also Read: Banks' Credit-Deposit Ratio Hits Record 83%

Scheduled Commercial Banks See Accelerated Credit and Deposit Growth

At scheduled commercial banks, credit growth accelerated to 19.3% year-on-year as of July 31, up from 18.6% at end-June. Deposit growth also strengthened, rising to 15.4% from 13.3% over the same period.

The faster mobilization of deposits helped moderate banks' incremental credit-deposit ratio, even as credit growth remained strong. The RBI's August bulletin identifies the combination of stronger bank credit and foreign funding as the principal factors behind the acceleration in financial-resource flows to the commercial sector.

The data point to a significant shift in the funding environment at the beginning of 2026-27, with bank credit accounting for nearly two-thirds of the Rs 10.65 lakh crore flow to the commercial sector, and non-bank sources providing additional support.