Industrial Loan Growth Picks Up As February Credit Data Turns Stronger

Industrial bank lending gathered pace in February 2026, pointing to firmer demand from infrastructure and manufacturing-linked segments. 

The latest data showed credit to industry growing 13.5% year-on-year, much higher than 7.5% a year earlier, while overall non-food bank credit also stayed strong at 14.3%.

India’s banking data for the fortnight ended February 28, 2026 showed a clear pickup in loans flowing to industry. Credit to industry rose 13.5% year-on-year, while agriculture and allied activities grew 12.3%, services 16.3%, and personal loans 15.2%. 

Reports published on March 30, 2026 by Business Standard, Economic Times and Outlook Business all pointed to the same broad shift: bank lending is staying healthy, but the industrial side is now improving faster than it was a year ago.

What Drove The Rise In February Credit?

The sharp move came mainly from infrastructure, engineering, chemicals, petroleum and coal products, nuclear fuels, and textiles. Business Standard and Economic Times both said these segments were the main contributors to the jump in industrial lending. Financial Express added that loans to micro and small industries and medium industries continued to grow in double digits, while even large industries saw stronger growth.
 

That makes this more than a routine monthly increase. The pattern suggests credit demand is widening across project-linked and production-linked sectors, not staying limited to consumer borrowing alone. At the same time, Economic Times reported that export credit fell 14% and consumer loans declined 10%, showing the lending mix is changing within the system.
 

The February print also fits with the year-end demand cycle. Analysts quoted by Business Standard on March 13 said lending activity usually improves in the final quarter because of higher working-capital demand.

What Changed Before This?

The build-up had started earlier. Outlook Business reported on January 31, 2026 that industrial credit growth had already reached 13.3% in December 2025, up from 7.5% a year earlier. 

Economic Times then reported on February 24, 2026 that commercial sector credit had surged 14.7% year-on-year by end-January as lower rates supported demand. Even earlier, LoansJagat had reported on September 2, 2025 that bank credit to industry had slowed to 7.6% in June 2025, which makes the present turnaround sharper.

Before the detailed sector view, the broad banking backdrop had already indicated stronger credit demand by late February. 
 

14.3% YoY

Services credit

16.3% YoY

Agriculture and allied activities

12.3% YoY

Business Standard reported on March 13, 2026 that total bank credit growth had accelerated to 14.5% in the February 28 fortnight.

What Stakeholders Are Saying?

The central bank’s sectoral reading, as quoted by Business Standard and Economic Times on March 30, said the rise was driven mainly by infrastructure and core manufacturing-linked sectors.