Thursday Oct 22, 2026
Thursday Oct 22, 2026
Thursday, 22 October 2026 00:28 - - {{hitsCtrl.values.hits}}
Banks added Rs. 550 billion in Personal Loans and Advances in the first eight months of 2026, the most of any main sector. Credit to Industry grew by Rs. 347 billion and to Construction by Rs. 131 billion, and growth in both slowed sharply in May to August compared with a year earlier. The figures come from the Central Bank’s Monthly Survey of loans and advances by licensed commercial banks to key sectors.
Personal Loans and Advances rose by Rs. 49 billion in August, and their Rs. 550 billion increase for the year was growth of 24.8%, taking the total to Rs. 2.8 trillion. Growth has also picked up pace. In May to August 2026, credit in this category rose by Rs. 269 billion, 72% more than the Rs. 157 billion added in the same months of 2025.
Pawning drove much of that growth. It added Rs. 24 billion in August and Rs. 264 billion over the eight months, a 29.4% increase, to reach Rs. 1.2 trillion. It has grown every month this year, by between Rs. 22 billion and Rs. 50 billion a month. In May to August 2026, pawning grew by Rs. 123 billion, 52% more than in the same period of 2025. Consumer Durables grew by Rs. 56 billion, or 69%, in 2026 to Rs. 137 billion, but rose by less than Rs. 1 billion in August. Credit Cards grew by Rs. 20 billion, or 10.5%, to Rs. 214 billion.
Industry added Rs. 36 billion in August and Rs. 347 billion in 2026, growing 9.1% to Rs. 4.2 trillion. Its growth has slowed. In May to August 2026, Industry credit rose by Rs. 213 billion, 23% less than the Rs. 277 billion in the same months of 2025.
Construction accounts for much of that slowdown. Credit to the sub-sector grew by Rs. 20 billion in August and Rs. 131 billion, or 7.2%, in 2026, reaching Rs. 2 trillion. Its growth in May to August 2026 was Rs. 86 billion, 38% less than the Rs. 140 billion in the same period of 2025. Personal Housing including Purchasing/Construction/Repairs, which the survey counts under Construction, rose by Rs. 12 billion in August and Rs. 63 billion, or 7%, in 2026, to Rs. 966 billion.
Textiles and Apparel went into reverse. Credit to the sector fell by Rs. 23 billion, or 5.3%, in August to Rs. 406 billion. That wiped out the Rs. 22 billion it had gained over the previous seven months and left it Rs. 1 billion below its end-2025 level. In May to August 2026, its credit fell by Rs. 10 billion, compared with an increase of Rs. 50 billion in the same months of 2025. Other manufacturing sub-sectors kept growing. Food and Beverages added Rs. 13 billion in August and Rs. 49 billion, or 20%, in 2026, reaching Rs. 292 billion. Chemical, Petroleum, Pharmaceutical and Healthcare, and Rubber and Plastic Products added Rs. 46 billion, or 20.5%, to reach Rs. 273 billion. Fabricated Metal Products, Machinery and Transport Equipment grew by only Rs. 6 billion, or 2%, to Rs. 327 billion.
Services added Rs. 406 billion in 2026, growing 13% to Rs. 3.5 trillion. Only Rs. 14 billion of that came in August, the smallest monthly increase since January. Credit to Services grew by Rs. 244 billion in May to August 2026, 8% less than in the same period of 2025.
Financial and Business Services added the most within Services, growing by Rs. 196 billion, or 25%, in 2026 to Rs. 980 billion. Its credit rose in every month until June, then fell by Rs. 13 billion in July and Rs. 4 billion in August. Its growth in May to August 2026 was Rs. 74 billion, 41% less than in the same months of 2025.
Wholesale and Retail Trade had the largest increase of any sub-sector in August, at Rs. 27 billion. It grew by Rs. 106 billion, or 9.7%, in 2026 to Rs. 1.2 trillion. Its May-to-August growth was Rs. 112 billion, up 15% on a year earlier. Tourism grew by Rs. 27 billion over the eight months, then lost Rs. 13 billion in July and August combined, ending at Rs. 312 billion. Shipping, Aviation and Freight Forwarding fell by Rs. 5 billion, or 9.5%, in August to Rs. 46 billion. Transport declined by Rs. 3 billion in 2026 to Rs. 81 billion.
Agriculture and Fishing added Rs. 20 billion in August and Rs. 130 billion, or 14.1%, in 2026, reaching Rs. 1 trillion. Its growth has picked up. Credit to the sector rose by Rs. 74 billion in May to August 2026, 48% more than in the same months of 2025. Paddy rose by Rs. 25 billion, or 33.3%, in 2026 to Rs. 100 billion. Livestock and Dairy Farming grew by Rs. 18 billion to Rs. 93 billion, and Tea by Rs. 17 billion to Rs. 211 billion.
These trends have changed the make-up of private sector credit. Since end-2025, the share of Personal Loans and Advances has risen to 24.1% from 22.1%, and Pawning’s share to 10.1% from 8.9%. Industry’s share has fallen to 36.3% from 38%, and Construction’s to 17% from 18.1%. Services eased to 30.5% from 30.9%, and Agriculture and Fishing was unchanged at 9.1%.
The survey began in April 2025, and the Central Bank says it cannot be compared directly with the quarterly survey it replaced. August figures are provisional.
