Credit to agriculture and allied activities registered a growth of 10.4 per cent y-o-y as against 20 per cent in the year-ago period
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Bank credit growth decelerated in March 2025 to 12 per cent year-on-year (y-o-y) as compared to 16.3 per cent in the year-ago period, with credit growth in agriculture and allied activities sector almost halving.
Credit growth in services and personal loans sectors declined substantially, while that in industry sector was almost flat.
Credit to agriculture and allied activities registered a growth of 10.4 per cent y-o-y (20 per cent in the corresponding fortnight of the previous year), per RBI data.
Declining credit to NBFCs
Credit to the services sector increased by 13.4 per cent y-o-y (20.8 per cent), primarily due to decelerated growth in credit to ‘non-banking financial companies’ (NBFCs). Credit growth to ‘professional services’ and ‘trade’ segments remained robust.
Credit to personal loans segment registered a growth of 14 per cent y-o-y as compared with 17.6 per cent a year ago, largely due to decline in growth in ‘other personal loans’, ‘vehicle loans’ and ‘credit card outstanding’.
RBI said credit to industry expanded by 8 per cent y-o-y – same as in the corresponding period of the previous year.
Among major industries, outstanding credit to ‘petroleum, coal products and nuclear fuels’, ‘basic metal and metal products’, ‘all engineering’ and ‘construction’ recorded an accelerated growth. However, credit growth in the infrastructure segment decelerated.
Published on April 30, 2025
