Growth in bank credit to industry moderates to 7.3% in September: RBI

Reserve Bank of India (RBI) in its latest data showed that growth in bank credit to industry moderated to 7.3%in September 2025, as compared with 8.9% in the corresponding period last year. On a year-on-year basis, non-food bank credit grew 10.2% as on the fortnight ended September 19, 2025, compared to 13%during the corresponding fortnight of the previous year (September 20, 2024). Credit to 'micro and small' and 'medium' industries continued to grow in double-digits.

The data showed that among major industries, outstanding credit to 'all engineering', 'infrastructure', 'textiles', and 'vehicles, vehicle parts and transport equipment' recorded buoyant year-on-year growth. Further, credit to agriculture and allied activities registered a year-on-year growth of 9% (16.4% in the corresponding fortnight of the previous year). Advances to services sector registered a growth rate of 10.2% year-on-year.

It said growth in credit to non-banking financial companies (NBFCs) decelerated, though segments such as tourism, hotels and restaurants, computer software, and commercial real estate witnessed robust growth. It said credit to personal loans segment recorded a decelerated year-on-year growth of 11.7%, as compared with 13.4% a year ago, largely due to moderation in growth of other personal loans, vehicle loans, and credit card outstanding.