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Bank credit growth to industry slows to 6.5% in August: RBI data

01 Oct 2025 Evaluate

The Reserve Bank of India (RBI) data showed that the pace of bank credit growth to industry has slowed down to 6.5% in August as against 9.7% in the corresponding period last year. The RBI has released data on sectoral deployment of bank credit for August 2025 collected from 41 select scheduled commercial banks (SCBs), accounting for about 95% of the total non-food credit by all SCBs.

The non-food bank credit grew 9.9% year on year (YoY) as on the fortnight ended August 22, 2025, compared to 13.6% in the year-ago period. Further, credit to micro and small, and medium industries continued to expand at a robust pace. The RBI has highlighted that among major industries, outstanding credit to ‘all engineering’, ‘vehicles, vehicle parts and transport equipment’ and ‘rubber, plastic and their products’ recorded buoyant year on year growth. Moreover, credit to agriculture and allied activities registered an annual growth of 7.6%, compared to 17.7% in the corresponding previous year.

The credit to personal loans segment has grown 11.8% YoY, as compared with 13.9% a year ago, largely due to moderation in growth of ‘other personal loans’, ‘vehicle loans’ and ‘credit card outstanding’. Besides, credit to the services sector increased 10.6% YoY against 13.9% in the year-ago. The growth in credit to ‘professional services’, ‘computer software’, ‘commercial real estate’ and ‘trade’ remained robust, while its was decelerated for non-banking financial companies (NBFCs).

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