According to Business Today, gold loans expanded 93.8% year-on-year at the end of June 2026, with banks adding Rs 74,171 crore in Q1FY27 to push the gold loan book to Rs 5.4 lakh crore. The segment accounted for 13.1% of the Rs 5 lakh crore incremental non-food credit during the quarter, lifting total non-food credit to Rs 219.4 lakh crore. Overall bank credit rose 18.6% year-on-year to cross Rs 219.3 lakh crore at the end of the first quarter.
Gold loans dominate personal lending
Loans against gold jewellery remained the fastest-growing segment within personal loans, rising 93.1% year-on-year to Rs 3.6 lakh crore, an increase of Rs 1.72 lakh crore from June 2025 levels. Overall personal loans expanded at a slower 15.8% compared with total credit growth. The report noted that growth moderated across most personal loan segments relative to Q1FY26 levels, except for vehicle loans, which rose 17.3% to Rs 7.5 lakh crore — nearly double the 9.2% growth recorded a year earlier.
Gold loans accounted for 13.1% of the Rs 5 lakh crore incremental non-food credit during the quarter.
Industry credit posts strongest Q1 growth in years
Credit to industry recorded a 19.2% increase, the highest first-quarter growth in recent years, taking outstanding loans to Rs 47.7 lakh crore. Within industry, large industries saw credit grow 16.6% to Rs 32.2 lakh crore, while medium enterprises were reported at 30% growth to Rs 4.7 lakh crore in one passage of the article, and separately at 30.2% with outstanding credit rising by Rs 1.2 lakh crore to Rs 5.1 lakh crore in another. Petroleum, power and engineering accounted for the largest share of incremental lending, with each sector adding around Rs 25,000 crore, together contributing 41% of incremental bank credit in the quarter. Overall, credit to industry increased by Rs 1.9 lakh crore during the period. Among sub-industries, petroleum, coal products and nuclear fuels led growth at 48.6%.
Services and NBFCs drive sequential expansion
Advances to the services sector grew 21.4% year-on-year. Credit to non-banking financial companies expanded 22.8% year-on-year, with outstanding loans increasing by Rs 3.8 lakh crore to Rs 20.6 lakh crore. Commercial real estate and trade followed with growth rates of 21.4% and 18.7%, respectively. On a sequential basis, incremental bank credit rose by Rs 7.2 lakh crore, or 3.4% quarter-on-quarter, during Q1FY27. Services contributed Rs 3.2 lakh crore (43.8%) of the total incremental credit, followed by industry at Rs 2.5 lakh crore (34%). Within segments, NBFCs accounted for the largest addition to credit during the quarter, with an increase of Rs 1.2 lakh crore. Loans against gold jewellery led growth within personal loans on a sequential basis, contributing Rs 0.5 lakh crore in Q1FY27.
Key credit aggregates at a glance
| Segment | Outstanding (Rs lakh crore) | YoY growth |
|---|---|---|
| Overall bank credit | 219.3 | 18.6% |
| Non-food credit | 219.4 | — |
| Gold loans | 5.4 | 93.8% |
| Loans against gold jewellery | 3.6 | 93.1% |
| Industry | 47.7 | 19.2% |
| Large industries | 32.2 | 16.6% |
| Vehicle loans | 7.5 | 17.3% |
| NBFC credit | 20.6 | 22.8% |
For finance executives and treasury teams tracking credit conditions, the Q1FY27 data show banks channelling incremental funds heavily into gold collateralised lending and NBFCs. The concentration of incremental industry credit in petroleum, power and engineering — together 41% of the quarterly expansion — indicates where working capital demand is building. With non-food credit at Rs 219.4 lakh crore and gold loans compounding near 94% year-on-year, corporate treasurers monitoring sectoral credit flows can read demand signals from commodity-linked industries and the financial intermediaries that serve them.
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