Bank lending moderated across sectors according to the latest data released by the Reserve bank of India. Overall it slowed to 11.2 % as on April 18, 2025, compared to 15.3 % during the period of the previous year - April 19, 2024.
Significantly, two sectors - loans against jewellery and loan to renewable energy in the priority sector posted a more 100 % growth of 120% and 110% respectively.
Retail loans growth decelerated to 14.5 % (y-o-y), as compared with 17.0 percent a year ago, largely due to decline in growth of ‘ unsecured loans which halved from 18 percent to 9 percent, ‘vehicle loans’ which fell from 17 percent to 9 percent and ‘credit card outstanding’ which fell from 23 % to 11%.
Credit to industry rose 6.7 per cent (y-o-y), compared with 6.9 per cent in the corresponding fortnight of the previous year. Among major industries, outstanding credit to ‘basic metal and metal products’, ‘all engineering’, ‘vehicles, vehicle parts and transport equipment’, ‘textiles’ and ‘construction’ recorded an accelerated y-o-y growth. However, credit growth in the infrastructure segment decelerated.
Lending to the services sector moderated to 11.2 per cent (y-o-y) compared to 19.5 per cent in the corresponding fortnight of the previous year. The Reserve Bank attributes this slowdown primarily to slowdown in credit to ‘non-banking financial companies’’. Credit growth to ‘trade’ and ‘computer software’ segments remained strong,RBI said.
Credit to agriculture and allied activities registered a growth of 9.2 per cent (y-o-y) compared to 19.8 per cent in the corresponding fortnight of the previous year.
Significantly, two sectors - loans against jewellery and loan to renewable energy in the priority sector posted a more 100 % growth of 120% and 110% respectively.
Retail loans growth decelerated to 14.5 % (y-o-y), as compared with 17.0 percent a year ago, largely due to decline in growth of ‘ unsecured loans which halved from 18 percent to 9 percent, ‘vehicle loans’ which fell from 17 percent to 9 percent and ‘credit card outstanding’ which fell from 23 % to 11%.
Credit to industry rose 6.7 per cent (y-o-y), compared with 6.9 per cent in the corresponding fortnight of the previous year. Among major industries, outstanding credit to ‘basic metal and metal products’, ‘all engineering’, ‘vehicles, vehicle parts and transport equipment’, ‘textiles’ and ‘construction’ recorded an accelerated y-o-y growth. However, credit growth in the infrastructure segment decelerated.
Lending to the services sector moderated to 11.2 per cent (y-o-y) compared to 19.5 per cent in the corresponding fortnight of the previous year. The Reserve Bank attributes this slowdown primarily to slowdown in credit to ‘non-banking financial companies’’. Credit growth to ‘trade’ and ‘computer software’ segments remained strong,RBI said.
Credit to agriculture and allied activities registered a growth of 9.2 per cent (y-o-y) compared to 19.8 per cent in the corresponding fortnight of the previous year.
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