Finance Ministry reports 55.4% growth in commercial sector funding for April-August FY27

Key facts

• Total financial resources flowing to the commercial sector from banks and non-bank sources reached ₹17.5 lakh crore during April-August FY27, compared to ₹11.2 lakh crore in the same period of the previous year.
• Non-food bank credit contributed ₹9.8 lakh crore to commercial sector funding, while corporate bond issuances by non-financial entities declined to ₹0.3 lakh crore from ₹1.5 lakh crore.
• As of 30th September, total bank credit registered a growth of 21.6%, with non-food credit growth recorded at 21.4%.
• Credit to the industry sector grew by 18.2% year-on-year in August 2026, with sub-sector growth of 31.8% for medium industries, 23.0% for micro and small industries, and 14.9% for large industries.
• The services sector recorded a 24.3% year-on-year credit growth, with lending to shipping and computer software services increasing by 25.6% and 41.8% respectively.
• According to the Reserve Bank of India (RBI) bank lending survey for the second quarter of FY27, the loan demand net response rose to 46.7 from 32.1 in the previous quarter.
• Banks expect loan demand to remain strong in the third quarter of FY27, with an expectations net response of 43.3.