Credit growth was led by sole proprietors, whose portfolio outstanding rose 19.3% year-on-year. The number of active loans to sole proprietors increased 27.4% during the period, the report said.
Asset quality also showed improvement in the 91–180 days past due (PAR) category, with the ratio declining to 1.2% in June 2026 from 1.5% a year earlier.
However, the risk profile of sole proprietors remained mixed. The share of low and very low-risk exposures increased marginally to 56.1% in June 2026 from 55.1% in June 2024, while the share of very high-risk exposure rose to 20% from 17.4% over the same period.
For enterprises, the share of low and very low-risk exposure increased to 70.9% in June 2026 from 66.4% in June 2024.
Manufacturing continued to account for the largest share of enterprise credit, at 41.92% of the portfolio, with the segment growing 3%.
The report also highlighted Rajasthan, where small business credit outstanding stood at ₹3.4 lakh crore in June 2026, up 16.8% year-on-year. The state’s 91–180 day PAR was 0.9%, while 77.3% of enterprise exposure was in low-risk categories.Manufacturing accounted for 45.4% of enterprise exposure in Rajasthan, while credit to the services segment grew 15.6%, the report said.
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