Archive · 22 Jul 2026
India's Commercial Sector Sees 148% Financial Resource Surge in Q1FY27
In the first three months of the financial year 2027, the total money flowing to businesses in India increased by 148% compared to the same period last year.
This means that businesses received ₹7.73 lakh crore, which is a lot more than the ₹3.12 lakh crore they received last year.
Most of this money came from banks, not from other sources like bonds or foreign investments.
This is because interest rates in the bond market went up, so businesses preferred to borrow from banks.
The Reserve Bank of India (RBI) also lowered interest rates, making it cheaper for businesses to borrow money.
This has helped different sectors like education, vehicles, infrastructure, and housing get loans at lower interest rates.
The RBI also noted that India's economy is growing fast despite some global uncertainties.
Total financial resources flow to the commercial sector increased by 148% year-on-year to ₹7.73 lakh crore in Q1FY27.
Non-food bank credit accounted for 65% (₹5.05 lakh crore) of the total flow, while non-bank sources accounted for the remaining 35% (₹2.68 lakh crore).
Corporate bond issuances were lower at ₹86,000 crore in April-May FY27 compared to ₹1.87 lakh crore in the previous year.
The RBI has lowered both EBLR and MCLR, with a full transmission of the 125 bps repo rate cut to EBLR and a 35 bps reduction in MCLR.
The weighted average lending rate on fresh and outstanding loans has decreased by 82 bps and 90 bps, respectively.
- Who
- Indian commercial sector, banks, and corporates
- What
- A 148% year-on-year increase in financial resources flow to the commercial sector
- When
- First three months of FY27 (April-June 2026)
- Where
- India
- Why
- Due to improved liquidity conditions and corporate tapping banks for credit amidst tightening bond market interest rates
Bank Credit Growth
Non-Bank Credit Growth
Credit Source Preference
Bank Credit Growth
Non-food bank credit accounted for 65% of the total flow, indicating a significant shift towards bank credit.
Non-Bank Credit Growth
Non-bank sources accounted for the remaining 35%, showing a decline from the previous year's 84%.
- Total Financial Resources Flow
- ₹7.73 lakh crore in Q1FY27
- Non-Food Bank Credit
- ₹5.05 lakh crore (65%)
- Non-Bank Credit
- ₹2.68 lakh crore (35%)
- Corporate Bond Issuances
- ₹86,000 crore in April-May FY27
- Repo Rate Cut Transmission
- 125 bps to EBLR, 35 bps to MCLR
- Weighted Average Lending Rate
- Down by 82 bps (fresh loans), 90 bps (outstanding loans)
- Deposit Rate Reduction
- 78 bps (fresh deposits), 52 bps (outstanding deposits)