Bank Credit Growth Slows to 6.5% in August: RBI Data

Mumbai, Sep 30 (PTI) Bank credit to industry grew at a slower pace of 6.5 per cent in August as against 9.7 per cent in the corresponding period last year, according to Reserve Bank data released on Tuesday.

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 per cent of the total non-food credit by all SCBs.

On a year-on-year (y-o-y) basis, non-food bank credit grew 9.9 per cent as on the fortnight ended August 22, 2025, compared to 13.6 per cent in the year-ago period, RBI said.

Credit to micro and small, and medium industries continued to expand at a robust pace.


"Among major industries, outstanding credit to ‘all engineering', ‘vehicles, vehicle parts and transport equipment' and ‘rubber, plastic and their products' recorded buoyant y-o-y growth," RBI said.

Further, credit to agriculture and allied activities registered an annual growth of 7.6 per cent, compared to 17.7 per cent in the corresponding fortnight of the previous year.

According to the data, credit to personal loans segment recorded a y-o-y growth of 11.8 per cent, as compared with 13.9 per cent a year ago, largely due to moderation in growth of ‘other personal loans', ‘vehicle loans' and ‘credit card outstanding'.

It also said that credit to the services sector registered a growth rate of 10.6 per cent y-o-y (as against 13.9 per cent in the year-ago fortnight).

Growth in credit to non-banking financial companies (NBFCs) decelerated, while it remained robust in segments such as ‘professional services', ‘computer software', ‘commercial real estate' and ‘trade'.