India's banking sector witnessed a remarkable surge in its gold loan portfolio, which skyrocketed by 128 per cent year-on-year to nearly Rs 4.28 trillion in February 2026, according to the latest Reserve Bank of India (RBI) data, highlighting a significant trend in retail credit growth.
Key Points
- Loans against gold jewellery experienced a significant 128 per cent year-on-year surge, reaching nearly Rs 4.28 trillion in February 2026.
- Overall retail loans grew by 15.2 per cent year-on-year to Rs 67.96 trillion, with vehicle loans also showing healthy growth at 17.1 per cent.
- Credit to Non-Banking Financial Companies (NBFCs) increased by nearly 21 per cent, contributing to a 16.3 per cent growth in the services sector.
- Aggregate bank credit rose by 14.3 per cent, with non-food credit expanding to Rs 206.7 trillion and food credit surging by 94.2 per cent.
- Credit to micro and small enterprises (MSEs) saw a sharp increase of 30.4 per cent, indicating robust lending to smaller businesses.
Loans against gold jewellery surged 128 per cent year-on-year (Y-o-Y) to nearly Rs 4.28 trillion in February 2026, latest Reserve Bank of India (RBI) data shows.
This compares with slightly over 103 per cent growth in the segment during the same period last year, when the outstanding portfolio stood at Rs 2.06 trillion.
Retail Loan Performance
Overall retail loans grew 15.2 per cent Y-o-Y to Rs 67.96 trillion in February 2026, compared with 11.7 per cent growth a year ago.
Within retail, credit card outstanding growth moderated sharply to 1.7 per cent Y-o-Y in January 2026 from 11.2 per cent in January 2025.
Vehicle loans recorded healthy growth of 17.1 per cent Y-o-Y, up from 9.6 per cent in the corresponding month last year.
Housing loan growth, however, remained steady at 11 per cent.
Credit to NBFCs and Services Sector
Loans to Non-Banking Financial Companies (NBFCs) also rose nearly 21 per cent Y-o-Y to Rs 19.5 trillion in the month as against Rs 16.35 trillion in the same period a year ago.
The segment grew by 8.1 per cent Y-o-Y in February 2025.
Credit to the services sector grew 16.3 per cent Y-o-Y, compared with 11.7 per cent growth in the corresponding time period of the previous year, supported by higher lending to segments such as non-banking financial companies (NBFCs), and commercial real estate.
Aggregate Bank Credit and Industrial Lending
Aggregate bank credit rose 14.3 per cent Y-o-Y as on fortnight ended February 28, 2026, higher than 11.1 per cent growth recorded compared to the fortnight previous year which ended on March 7, 2025.
Food credit expanded nearly 94.2 per cent Y-o-Y to Rs 82,643 crore, while non-food credit grew 14.3 per cent to Rs 206.7 trillion.
Credit to industry increased 13.5 per cent Y-o-Y in January, compared with 7.5 per cent growth a year earlier.
Growth in Micro, Small, and Medium Enterprises
Credit to micro and small enterprises (MSEs) rose sharply by 30.4 per cent Y-o-Y, up from 9.6 per cent, while loans to medium industries grew 21 per cent, compared with 18 per cent in February 2025.
Credit to large industries saw healthy growth of 7.8 per cent Y-o-Y, compared to 5.6 per cent a year ago.
Among major industries, outstanding credit to infrastructure grew 7.9 per cent Y-o-Y, compared with 1.7 per cent growth a year earlier.
Sector-Specific Credit Expansion
Credit to the engineering segment surged 36 per cent Y-o-Y, up from nearly 19 per cent last year.
Loans to the chemicals and chemical products segment grew 19.1 per cent Y-o-Y, compared with 6.8 per cent in February 2025.
Similarly, credit to petroleum, coal products and nuclear fuels grew by 19.1 per cent Y-o-Y as against 6.8 per cent Y-o-Y growth in the year ago period.
Credit growth in the textiles segment was healthy at 8.2 per cent Y-o-Y from 7.1 per cent a year earlier.
