Industrial Credit Growth Declines To 7.6% In June: RBI Data

Growth in bank credit to industries declined to 7.6% in June 2025 from 11.3% a year ago while the personal loans segment continued to grow faster than overall advances, according to RBI data released on Friday.

The Reserve Bank data also showed that bank credit growth decelerated to 9.9% in June 2025 from 15% in June 2024.

The share of loans bearing interest rates below 9% increased to 54.1% in June 2025, from 43.2% in the previous year, with the easing of policy rates, the central bank said.

"In line with monetary policy actions, the weighted average lending rate (WALR) on outstanding credit declined by 39 basis points (bps) during April-June 2025, with reductions observed across all major sectors," RBI said.

Personal loans continued to grow faster than overall credit, gradually increasing their share to 32 per cent of total credit by June 2025; within personal loans, housing loans accounted for more than half.

"Industrial credit growth (y-o-y) declined to 7.6% in June 2025 from 11.3% a year ago; its share in total credit declined marginally to 23.3% in Q1: 2025-26% from 23.8% a year ago," it said.

Further, the share of individuals in total credit rose to 47.2% in June 2025, up from 46.5% in June 2024. Growth in credit to female borrowers continued to outpace that of males, lifting women's share within credit to individuals to 23.7% from 23.4% in June 2024.

Public sector banks recorded higher credit growth (11%) than private sector banks (8.3%) and foreign banks (8%) in June 2025, sustaining their leading position of 53.7% in total credit.

Another set of data showed that bank term deposits recorded a growth of 13.5%, significantly outpacing the savings deposits growth of 5.4% in June 2025.

Consequently, the share of term deposits in total deposits soared to 62.2% from 61% in June 2024.

"Nearly 70% of term deposits accounted for the original maturity bucket of one to three years in June 2025, whereas around 20% of term deposits were short-term deposits with a maturity of less than one year," RBI said.

Reflection of recent monetary easing became evident in the interest rate structure of term deposits as the proportion of such deposits bearing higher interest rates of '7% and above' declined to 65% in June 2025, compared to that of 66.9% a year ago.

"The share of term deposits of size 'Rs one crore and above' inched up to 45.7% in June 2025 as compared to 44.8% a year ago," it said.

The share of 'Household' deposits witnessed a modest decline in the recent period to 59.9% in June 2025 as compared to that of 60.8% in June 2024.

The corresponding share of 'Financial Corporations' moved up to 7% in June 2025 as compared to that of 6% a year ago.

Senior citizens owned 20.4% of the total deposits as at end-June 2025, according to the data.

Deposits growth of public sector banks and private sector banks stood at 10.2% and 12.4%, respectively, in June 2025; whereas their corresponding shares in deposits were hovering at 57.3% and 36%, respectively.

The top five states/ Union Territories – Maharashtra, NCT of Delhi, Karnataka, Uttar Pradesh, and Tamil Nadu – collectively accounted for 54.3% of total deposits and 47.8% of 'Household' deposits as at end-June 2025.