Bank credit to industries slows to 7.6% in June: RBI data

Reserve Bank of India (RBI) data has indicated that growth in bank credit to industries slowed to 7.6% in June 2025 as compared to 11.3% a year ago. Meanwhile, the personal loans segment continued to grow faster than overall advances.

Further, the share of Industrial credit in total credit declined marginally to 23.3% from 23.8% a year ago, while the share of Personal loans grew to 32% of total credit by June 2025. Within Personal loans, the housing loans accounted for more than half. The 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 RBI said that 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. During June 2025, the public sector banks recorded credit growth of 11% which is higher than the 8.3% growth of private sector banks and 8% growth of foreign banks. The public sector banks have sustained their leading position in total credit with a share of 53.7%. Consequently, the share of term deposits in total deposits soared to 62.2% from 61% in June 2024.

RBI added that the 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.

Also, 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. In June 2025, the share of 'Household' deposits witnessed a modest decline in the recent period to 59.9% 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. Besides, 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.