MUMBAI: Banks lent more to NBFCs than to home buyers in the first half of FY27, with advances to non-bank lenders rising by Rs 1.8 lakh crore, compared with Rs 1.4 lakh crore for housing. Of the Rs 16.1 lakh crore incremental non-food credit added between March 31 and Sept 30, industry accounted for Rs 3.7 lakh crore, while trade absorbed Rs 1 lakh crore, reflecting strong demand across corporate and services segments.Scheduled commercial banks’ outstanding non-food credit rose 19.1% year on year to Rs 229 lakh crore at the end of Sept, with the six-month expansion marking a 7.5% increase over March. Services accounted for the largest share of incremental lending at Rs 4.9 lakh crore, followed by personal loans at Rs 4.5 lakh crore, industry at Rs 3.7 lakh crore and agriculture at Rs 1.8 lakh crore.Gold loans continued to be a major contributor to retail credit growth. Outstanding advances against gold jewellery surged 82.6% year-on-year to Rs 5.8 lakh crore, rising 25.1% in the first half alone. Banks added Rs 1.2 lakh crore in gold loans between March and Sept.
Clooneys’ foundation gives free legal aid to over 9,000 women and children
Within services, lending to NBFCs grew 41.8% year-on-year to Rs 22.5 lakh crore. Commercial real estate advances rose 23.3% to Rs 7.5 lakh crore, while trade credit grew 23.9%. Services credit as a whole expanded 28.3% to Rs 64.9 lakh crore, accounting for 30.6% of incremental non-food lending.Industrial credit grew 19.5% to Rs 49.8 lakh crore. While advances to large industries rose 16% to Rs 33 lakh crore, lending to medium enterprises grew 33.2% and to micro and small enterprises 24.4%. Of the Rs 3.7 lakh crore incremental industrial credit, large companies accounted for Rs 2 lakh crore and MSMEs Rs 1.6 lakh crore.Agriculture and allied activities credit rose 19.5% to Rs 28.2 lakh crore from Rs 23.6 lakh crore a year earlier. Personal loans grew 17.3% to Rs 74.27 lakh crore, although the composition of retail lending shifted towards secured advances.One of the fastest-growing segments was loans against fixed deposits, including FCNR(B) and NRNR deposits. Outstanding advances in this category rose 53.3% year-on-year to Rs 2.2 lakh crore, increasing 28.1% in the six months to Sept. Banks added Rs 47,471 crore in such loans during the period.These advances accounted for 10.6% of the Rs 4.5 lakh crore incremental personal loans during the half-year and 3% of the banking system’s incremental non-food credit.
