NBFC Credit Growth Reflects Seasonal and Sectoral Trends

Recently released data by the Reserve Bank of India (RBI) indicates a significant increase in credit provided by non-banking financial companies (NBFCs) in June 2026, with year-on-year growth at 14.4%, compared to 11.1% from the previous year. This rise can be attributed to various sectoral trends and seasonal factors within the Indian economy. For instance, the agricultural and allied activities witnessed a robust growth of 17.9% in comparison to the same period last year, driven by strong demand for investments and resources in the primary sector. Conversely, the industrial segment experienced a more moderate growth of 6.7%, with significant decreases observed in infrastructure, which is a major component of this sector. The services sector also saw a moderation in its growth rate to 17.6% compared to 22.4% in June 2025. However, the commercial real estate witnessed strong growth and retail loans accelerated their expansion to 20.3%, with robust credit growth seen in segments such as housing, vehicles, and loans against gold jewelry. These trends indicate a diversified economy facing various sectoral challenges but also showing signs of recovery and strong growth in more dynamic sectors. Source: Reserve Bank of India