MUMBAI: In an unusual turn, Indian banks extended more credit for automobile purchases than for housing in the first quarter of FY26, highlighting a shift in consumer demand and lending patterns.According to RBI data on the sectoral deployment of bank credit, banks added Rs 2.4 lakh crore to their loan books between April and June. Of this, nearly two-thirds came from home loans, vehicle loans and loans against gold jewellery. Housing finance which has traditionally been the main driver of retail lending saw a marked slowdown partly due to HDFC Bank growing mortgages slower than industry on its large base due to competition.At the end of June, outstanding home loans stood at Rs 30.6 lakh crore, making up 16.6% of all bank credit. While this represents a year-on-year growth of 9.6%, lending during the quarter rose by just 1.9% or Rs 56,643 crore, slower than vehicle finance.Auto loans grew Rs 29,492 crore during the quarter, taking the total to Rs 6.52 lakh crore. That was a 4.7% rise in three months and 10.8% higher than a year earlier, lifting the segment’s share in bank credit to 3.5%.The overall growth in bank credit was modest, with outstanding loans growing just 1.3% in the quarter, from Rs 182.44 lakh crore to Rs 184.83 lakh crore. A key drag was the services sector, where loans declined 0.6% or Rs 30,631 crore, pulled down by a 2.4% contraction in credit to non-banking financial companies. Lending to NBFCs fell to Rs 15.96 lakh crore.Gold-backed loans, however, saw the sharpest rise, growing 28.9% to Rs 2.77 lakh crore. The increase was driven by reclassification of agri loans secured against gold into the gold loan category. This trend could change in second quarter with RBI revising norms again.Lending to agriculture expanded 6.8% year on year, lower than the 17.4% growth seen in the same period last year. Industrial credit grew 5.5%, compared to 7.7% a year earlier, though sectors such as engineering, construction and textiles showed improved momentum.Personal loans, which include unsecured lending and credit card dues, continued to grow but at a slower clip. Growth in the segment decelerated to 14.7% from 16.6% a year earlier, amid a moderation in vehicle loans and credit card outstandings.