Banks' credit grew by 12.78 per cent to Rs 86,60,069 crore in the fortnight ended July 6, according to the RBI data.
In the year-ago fortnight, banks' advances stood at Rs 76,78,455 crore.
In the fortnight ended June 22, 2018, growth in advances was 12.84 per cent at Rs 86,16,408 crore.
During the reporting fortnight, banks' deposits rose by 8.33 per cent to Rs 114,85,768 crore from Rs 106,01,663 crore in the previous fortnight, the data showed.
In May, non-food bank credit increased by 11.1 per cent year-on-year, compared with an increase of 4.1 per cent in May last year.
Loans to industry rose by 1.4 per cent in May 2018, against a contraction of 2.1 per cent in May 2017.
Advances to agriculture and allied activities increased by 6.4 per cent in May 2018, compared with an increase of 7.4 per cent in May 2017.