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- 04 min Read
- July 8, 2026
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India’s Credit Story Keeps Gathering Pace
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- Other Experts
Motilal Oswal Asset Management
NBFC credit grew 14% YoY in May, led by a 20% rise in retail lending and 18% growth in agriculture and allied sector loans, highlighting continued strength in India's domestic credit cycle. Demand remained healthy across key retail segments, reinforcing the role of NBFCs in expanding financial access.
The momentum came from gold loans, which surged 70% YoY, while consumer durable financing grew 42%, reflecting rising consumer spending and improving credit penetration. Commercial real estate lending also recorded, 40% YoY growth, pointing to healthy activity across multiple segments of the economy.
The data reinforces a broader structural trend. India's financialization journey continues to deepen as formal credit reaches more consumers, businesses, and rural borrowers, creating a long runway for lenders focused on retail and underserved markets.
India's credit opportunity remains one of a key structural growth themes. As a house, we remain constructive on NBFCs and retail-focused financial institutions, with portfolios having exposure to companies participating in trends such as rising credit penetration, financial inclusion, and the long-term formalization of India's economy.
Source: Economic Times. Data as on: 8th July 2026.
Source: MOAMC Internal. Portfolio data as on: 30th June 2026.
Disclaimer:
The information provided is for informational purposes only and should not be construed as investment advice or a recommendation to buy, sell, or hold any security or sector. Views are based on current market conditions and are subject to change without notice. Sectoral allocations and portfolio positioning may vary across schemes and are subject to change in accordance with the investment objective and market conditions. Past performance may or may not be sustained in future and is not a guarantee of future returns.
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