RBI Data Alert: Growth In Bank Loans To Industries Nearly Halves — What Slower Credit Could Mean For Jobs And Economy

On the fortnight ended May 30, 2025, the bank credit industry expanded at 4.9% as compared to the 8.9% growth in the corresponding period of the previous year, the Reserve Bank of India (RBI) said on Monday.

Where Has The Data Been Collected From?

The central bank has released its official data on the sectoral deployment of bank credit for May 2025 which was collected from 41 selected scheduled commercial banks (SCBs), and accounts for approximately 95% of the total non-food credit by all commercial banks.

What Does The Data Illustrate?

As per the data by the central bank, non-food credit as on the fortnight ended May 30, 2025, grew by 9.8%, year-on-year (YoY) as compared to 16.2% during the corresponding fortnight of the previous year.

"Credit to industry recorded a y-o-y growth of 4.9%, compared with 8.9% in the corresponding fortnight of the previous year. Among major industries, outstanding credit to 'all engineering', 'construction' and 'rubber, plastic and their products' recorded an accelerated y-o-y growth," it said.

Additionally, the data illustrates that the credit to agriculture as well as allied activities registered an annual growth of 7.5% as against 21.6% in the corresponding fortnight of the previous year.

The central bank also highlighted that the credit to the services sector moderated to 9.4% YoY, majorly on the back of decelerated growth in credit to 'non-banking financial companies' (NBFCs).

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