Bank Credit Growth Slows to 11.2% in April 2025; Personal Loans and Services Sector See Dip

Mumbai, May 31, 2025 – The Reserve Bank of India (RBI) has released data on the sectoral deployment of bank credit for April 2025, showing a slowdown in the overall growth of non-food bank credit. The data, collected from 41 major scheduled commercial banks—covering nearly 95% of total non-food credit—offers insight into how different sectors of the economy are using bank loans.

According to the report, non-food bank credit grew by 11.2% year-on-year (y-o-y) as of April 18, 2025, which is lower than the 15.3% growth recorded during the same period last year.

Key Highlights by Sector:

1. Agriculture and Allied Activities

• Credit growth to this sector stood at 9.2% in April 2025.
• This marks a significant drop compared to the 19.8% growth seen during the same period last year.

2. Industry

• Loans to the industrial sector grew by 6.7%, slightly below the 6.9% recorded a year ago.
• However, some industries saw stronger demand for credit, including:
  • Basic metal and metal products
  • Engineering
  • Vehicles and transport equipment
  • Textiles
  • Construction
• In contrast, credit to the infrastructure segment showed slower growth.

3. Services Sector

• The services sector saw a moderation in credit growth to 11.2%, down from 19.5% a year earlier.
• The main reason was a decline in credit to Non-Banking Financial Companies (NBFCs).
• However, credit growth remained strong in segments like trade and computer software.

4. Personal Loans

• Credit to individuals, or the personal loans segment, grew by 14.5%, compared to 17% last year.
• The slowdown was due to reduced growth in:
  • Other personal loans
  • Vehicle loans
  • Credit card outstanding balances

Download data