Banks lift share in flow of resources to corp sector – The Times of India

MUMBAI: Scheduled business banks have regained market share in financing the business sector in FY26 up to Jan 31 by increasing non-meals credit score quicker than the general useful resource pool, reversing a contraction seen in FY25 amid a surge in fairness issuances and non-financial institution funding.Information for FY26 up to Jan 31, 2026 launched in RBI’s bulletin reveals that incremental flows by method of financial institution credit score stood at Rs 21.8 lakh crore in the ten-month interval as in opposition to Rs 14 lakh crore in the identical interval of 2024-25, a progress of 55.3%. Over the identical span, the entire flow of monetary resources from all sources elevated from Rs 25.5 lakh crore to Rs 34.5 lakh crore, an increase of 35%.As a result of financial institution credit score grew quicker than the general useful resource pool, banks lifted their share of complete business sector funding to 63.2% in the course of the interval. In FY26 up to Jan 31, nevertheless, home non-financial institution sources slowed. General home non-financial institution funding grew 4.9%, from Rs 9.1 lakh crore in the comparable interval of FY25 to Rs 9.6 lakh crore. Fairness issuances contracted 12.3%, falling from Rs 3.4 lakh crore to practically Rs three lakh crore for the interval ended Jan 31. Company bond issuances have been the one main home non-financial institution section to outpace financial institution credit score progress, rising from Rs 1.1 lakh crore to Rs 2.5 lakh crore. International sources of funding remained agency.Useful resource flows from overseas elevated from Rs 2.4 lakh crore to Rs 3.1 lakh crore up to Jan 31. The restoration follows a 12 months of retreat. In 2023-24, non-meals financial institution credit score stood at Rs 21.4 lakh crore. By the top of 2024-25, it had fallen to Rs 17.9 lakh crore. Within the present fiscal, most banks have elevated advances goal after financial institution credit score grew 14.6%, the best in 19 months, for the fortnight ended Jan 31, 2026.