Mumbai: NBFCs Register 14.2 % Credit Growth In May Driven By Retail Loans
Retail loans remained the key growth driver, expanding 19.5 per cent (y-o-y) to ₹25.2 lakh crore in May 2026 over 14.9 per cent a year ago: RBI
MUMBAI: Non-banking finance companies (NBFCs) registered higher credit growth of 14.2 per cent at ₹58.6 lakh crore in May 2026, compared to 11.4 percent a year ago, on the back of robust growth in retail loans and industrial loans as per data on sectoral deployment of credit by NBFCs released by the RBI on Tuesday.
Interestingly, although on a smaller base, outstanding credit extended by non-banking financial companies (NBFCs) against gold jewellery and consumer durables surged 70 per cent and 42 percent year-on-year in May respectively, marking the fastest growth among all lending segments. The total outstanding loans against gold jewellery was Rs3.29 lakh crore while consumer durables were Rs 68814 crore.
Retail loans remained the key growth driver, expanding 19.5 per cent (y-o-y) to ₹25.2 lakh crore in May 2026 over 14.9 per cent a year ago, according to the RBI statement. Retail loans accounted for nearly 43 per cent of the sector’s overall loan book. Within retail loans, housing loans increased 10.9 per cent to ₹8.35 lakh crore, while vehicle loans rose 14.8 per cent to ₹6.18 lakh crore.
Credit growth in agriculture and allied activities recorded a robust growth of 17.9 per cent (y-o-y) in May 2026 against 5 per cent a year ago. Credit to industry grew by 7.3 per cent (y-o-y) in May 2026 as compared with 10 per cent in May 2025. Moderation in growth in industry was primarily driven by subdued growth in infrastructure, a major constituent of the segment said the RBI.
Credit growth in the services sector moderated to 16.7 per cent (y-o-y) in May 2026 against 23.9 per cent a year ago. Among major contributors, growth (y-o-y) in credit to ‘Commercial Real Estate’
marked buoyant expansion.