Mumbai (Maharashtra) [India], August 26 (ANI): The flow of financial resources to India's commercial sector more than doubled to Rs 10.65 lakh crore in the first four months of 2026-27, up to July 31, from Rs 4.48 lakh crore in the same period last year, according to the Reserve Bank of India's August Bulletin.
The sharp rise was mainly driven by higher non-food bank credit and increased foreign investment, indicating improved availability of funds for businesses and investment activity.
"The total flow of financial resources to the commercial sector increased in 2026-27 so far (up to July 31)," the RBI said, attributing the rise to a pickup in non-food bank credit and higher foreign direct investment (FDI) into India.
Non-food bank credit to the commercial sector rose sharply to Rs 6.69 lakh crore during April-July 2026-27, compared with Rs 72,705 crore in the corresponding period last year.
Total non-bank sources of funding also increased to Rs 3.96 lakh crore from Rs 3.76 lakh crore during the same period.
Foreign sources of funding rose 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 a year earlier.
The RBI data showed FDI inflows at Rs 1.62 lakh crore. The central bank noted that some data on non-bank sources was available only up to June.
The overall outstanding credit available to the commercial sector also increased. It stood at Rs 323.14 lakh crore as on July 31, registering a 17.4 per cent year-on-year growth compared with Rs 275.24 lakh crore a year earlier.
Outstanding non-food bank credit grew 19.1 per cent year-on-year to Rs 219.60 lakh crore, while outstanding non-bank sources rose 14 per cent to Rs 103.53 lakh crore.
The RBI said improving liquidity conditions were supporting credit growth and investment activity.
"Liquidity conditions eased, supporting credit growth and ongoing investment activity," the central bank said.
Bank credit growth also remained strong. Credit growth of scheduled commercial banks stood at 19.3 per cent year-on-year as on July 31, compared with 18.6 per cent a month earlier.
Deposit growth also improved to 15.4 per cent from 13.3 per cent during the same period.
The RBI data indicate that stronger bank credit, higher foreign investment and improved liquidity are helping increase the availability of funds for commercial activity and investment as 2026-27 progresses. (ANI)
Financial resource flow to commercial sector more than doubled to Rs 10.65 lakh crore in April-July: RBI
