According to the SBI Research report prior to the Monetary Policy Committee (MPC) meeting, the two major instruments of lending, namely corporate borrowing as well as retail loans contributed almost two-third of the growth in bank credit in the April-June quarter of FY27 with the leading sectors being petroleum, infrastructure, engineering and chemicals.
As per the statement given in the report, Over three-fifth of surplus in bank credit during that quarter has come from the corporate lending and personal loans.
"The sectoral incremental credit growth data during Apr-June, 2026 indicates that 'industry and personal loans' has contributed ~63% of the incremental credit growth," SBI Research said in the report.
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The report states that loans issued to businesses increased by Rs 1.87 lakh crore from April to June, with around half of the increase going to four sectors.
"Among industries, 'Petroleum, Coal Products and Nuclear Fuels', 'Infrastructure (especially Power)', 'Chemicals', and 'All Engineering' are contributing ~50% of the incremental industry credit," the report said.
The report stated that the biggest beneficiary of incremental credit was petroleum products, coal and nuclear fuel (Rs 255 billion), followed by engineering (Rs 249 billion), infrastructure (Rs 217 billion), and chemicals (Rs 208 billion). The food processing and the basic metals sectors and the transport, construction and electronics sectors also performed well in the increase in lending.
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In the retail sector, loans against gold jewellery became the top contributor to personal lending growth.
"Among personal loans, 42% (Rs 742 bn out of Rs 1,738 bn) is contributed by 'loans against gold jewellery' alone," the report said.
