Deceleration in Bank Credit Growth Reflects Economic Shifts
Bank credit to various industries has slowed, with a notable decrease in growth rate from the previous year. The data, released by the Reserve Bank of India, highlights a drop in growth across key sectors, with personal loans experiencing significant moderation. Yet, credit to 'computer software' remains strong.
- Country:
- India
The Reserve Bank of India has reported a notable slowdown in bank credit growth to the industry, with a 4.9% expansion in the fortnight ending on May 30, 2025. This is a stark decrease compared to the 8.9% growth witnessed in the same period last year.
According to data collected from 41 select scheduled commercial banks, non-food bank credit grew by 9.8% on a year-on-year basis, down from 16.2% during the same timeframe last year. Major industries, such as engineering, construction, and rubber products, experienced some growth, while credit to NBFCs saw a slowdown.
Agriculture and allied activities faced a significant decrease in growth, and the services sector saw moderated credit growth at 9.4% y-o-y. Despite these trends, the computer software sector demonstrated robust credit growth, and the personal loan segment saw a y-o-y growth of 13.7%.
(With inputs from agencies.)
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