Bank Credit Growth Slows to 5.5% in June

Mumbai, Jul 31 (PTI) The bank credit growth to industry slowed to 5.5 per cent in the fortnight ended June 26 compared to 7.7 per cent in the year-ago period, according to data released by the Reserve Bank on Thursday.

On a year-on-year (y-o-y) basis, non-food bank credit grew by 10.2 per cent as of the fortnight ended June 27, 2025, against 13.8 per cent during the corresponding period of the previous year, it said.

The RBI has released the data on sectoral deployment of bank credit for June 2025 collected from 41 select scheduled commercial banks (SCBs), accounting for about 95 per cent of the total non-food credit by all banks.

"Credit to micro, small, and medium industries continued to grow steadily. Among major industries, outstanding credit to 'all engineering', 'construction' and 'textiles' recorded an accelerated y-o-y growth," the RBI said.


Credit to agriculture and allied activities registered a y-o-y growth of 6.8 per cent from 17.4 per cent a year ago.

The central bank further said advances to the services sector moderated to 9.6 per cent y-o-y (15.1 per cent in the corresponding fortnight of the previous year), primarily due to decelerated growth in credit to NBFCs.

Credit growth to the 'computer software' and 'professional services' segment remained robust.

The central bank also said that credit to the personal loans segment registered a decelerated y-o-y growth of 14.7 per cent compared to 16.6 per cent a year ago, largely due to a moderation in growth of ‘other personal loans', ‘vehicle loans' and ‘credit card outstanding'.