Slowing Bank Credit Growth Highlights Economic Shifts

Bank credit to industry grew at a slower rate of 6.5% in August 2025 compared to 9.7% last year, as per RBI data. Credit to agriculture, personal loans, and services sector also moderated, while non-food bank credit rose 9.9% year-on-year. NBFC credit growth decelerated, but some sectors saw robust expansion.

Devdiscourse News Desk | Mumbai | Updated: 30-09-2025 20:26 IST | Created: 30-09-2025 20:26 IST

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Country:
India

Bank credit to industry has decelerated, growing by 6.5% in August 2025 compared to 9.7% in the previous year, according to the Reserve Bank of India's latest data.

The analysis, released on Tuesday, showcases a decline in the pace of credit expansion across various sectors, despite non-food bank credit witnessing a 9.9% year-on-year increase.

While segments like micro and small industries continued thriving, sectors such as agriculture, personal loans, and services experienced moderated growth, and credit to non-banking financial companies decelerated.