Sectoral Deployment of Bank Credit – August 2025

Data on sectoral deployment of bank credit for the month of 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, are set out in Statements I and II.

On a year-on-year (y-o-y) basis, non-food bank credit grew by 9.9 per cent as on the fortnight ended August 22, 2025, compared to 13.6 per cent during the corresponding fortnight of the previous year (i.e., August 23, 2024).

Highlights of the sectoral deployment of bank credit as on the fortnight ended August 22, 2025 are given below:

• Credit to agriculture and allied activities registered a y-o-y growth of 7.6 per cent (17.7 per cent in the corresponding fortnight of the previous year).
• Credit to industry recorded a y-o-y growth of 6.5 per cent, compared with 9.7 per cent in the corresponding fortnight of last year. 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.
• Credit to services sector registered a growth rate of 10.6 per cent y-o-y (13.9 per cent in the corresponding fortnight of the previous year). 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’.
• Credit to personal loans segment recorded a decelerated 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’.