Bank Credit Growth Slows To 4.9% During Fortnight Ended May 30: RBI

Bank credit to industry expanded at 4.9% in the fortnight ended May 30, against 8.9% growth in the corresponding period of the previous year, the Reserve Bank said on Monday.

The RBI has released the data on sectoral deployment of bank credit for May 2025 collected from 41 select scheduled commercial banks, accounting for about 95% of the total non-food credit by all commercial banks.

On a year-on-year basis, non-food bank credit as on the fortnight ended May 30, grew by 9.8% 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 per cent, 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.

According to the data, credit to agriculture and allied activities registered a y-o-y growth of 7.5% as against 21.6% in the corresponding fortnight of the previous year.

RBI further said credit to the services sector moderated to 9.4% y-o-y (20.7 per cent in the corresponding fortnight of the previous year), primarily due to decelerated growth in credit to ‘non-banking financial companies’.

On the other hand, credit growth to ‘computer software’ segment remained robust.

Further, credit to personal loans segment registered a y-o-y growth of 13.7% compared with 19.3% a year ago, largely due to moderation in growth of ‘other personal loans’, ‘vehicle loans’ and ‘credit card outstanding’.