The flow of financial resources to India’s commercial sector increased to Rs 10.65 lakh crore during April-July 2026, more than doubling from Rs 4.48 lakh crore recorded during the corresponding period of the previous year, according to data released by the Reserve Bank of India (RBI) in its August Bulletin.
The increase was primarily supported by stronger non-food bank credit and higher foreign investment, indicating greater availability of funding for commercial activities and investment.
Non-food bank credit to the commercial sector reached Rs 6.69 lakh crore during April-July 2026, compared with Rs 72,705 crore in the same period a year earlier.
Funding from non-bank sources stood at Rs 3.96 lakh crore, marginally higher than Rs 3.76 lakh crore recorded a year ago. Within this category, foreign sources increased to Rs 2.08 lakh crore from Rs 1.39 lakh crore, while domestic sources declined to Rs 1.88 lakh crore from Rs 2.37 lakh crore.
The RBI reported foreign direct investment (FDI) inflows of Rs 1.62 lakh crore during the period. The central bank also noted that data for certain non-bank funding components was available only up to June.
Outstanding financial resources available to the commercial sector increased to Rs 323.14 lakh crore as of July 31, 2026, representing a 17.4% year-on-year increase from Rs 275.24 lakh crore a year earlier.
Outstanding non-food bank credit grew 19.1% year-on-year to Rs 219.60 lakh crore, while outstanding non-bank sources increased 14% to Rs 103.53 lakh crore.
The RBI also reported continued growth in bank lending. Credit growth of scheduled commercial banks accelerated to 19.3% year-on-year as of July 31, compared with 18.6% a month earlier. Deposit growth also improved, rising to 15.4% from 13.3% over the same period.
According to the central bank, easing liquidity conditions supported credit expansion and investment activity during the period. The data indicate that stronger bank lending, increased foreign funding and improved liquidity contributed to a substantial rise in financial resources available to India’s commercial sector during the opening months of 2026-27. CA Sansaar