 "Bank credit demand from industry gains momentum as loan growth accelerates")
Loan demand from industry showed signs of gaining momentum, which grew by 9.6 per cent year-on-year (Y-o-y) till November as compared to 8.3 per cent a year ago, the latest data released by the Reserve Bank of India showed. The growth of retail unsecured loan moderated further.
The data highlighted that credit to ‘Micro and Small’ and ‘Medium’ industries continued to exhibit double-digit expansion. Among major industries, outstanding credit to ‘infrastructure’, ‘all engineering’, ‘textiles’ and ‘petroleum, coal products and nuclear fuels’ registered buoyant growth from the year-ago period.
Credit to retail loans segment recorded 12.8 per cent growth, as compared with 13.4 per cent a year ago. While segments such as vehicle loans and loans against gold jewellery sustained steady credit growth, housing and credit card witnessed moderation.
The growth in credit card outstanding was down to 2.4 per cent Y-o-Y in November 2025, as against 18.1 per cent a year ago, while credit to housing segment was down at 9.9 per cent from 12.2 per cent in the year-ago period.
In contrast, vehicle loan growth was up to 12.4 per cent Y-o-Y in November as against 10.3 per cent last year. Loan against gold jewellery saw 125.3 per cent Y-o-Y growth as opposed to 77.3 per cent in November 2024.
Credit growth to the services sector was 11.7 per cent as against 12.8 per cent a year ago.
Loan growth to ‘non-banking financial companies’ (NBFCs) improved to 9.5 per cent Y-o-Y in November as against 7.5 per cent in the same period last year. Segments such as ‘trade’ and ‘commercial real estate’ also registered healthy growth, albeit with a marginal deceleration, RBI said.