Non-food credit growth accelerates to 14.4% Y-o-Y in Dec 2025: RBI data

Credit offtake strengthened on broad-based demand led by personal loans, MSME borrowing and services sector growth, while gold loans surged 127.6% amid reporting norm changes

Credit offtake strengthened in December 2025, with non-food bank credit growth accelerating to 14.4 per cent year-on-year (Y-o-Y) compared with 11.1 per cent in December 2024 and 11.4 per cent in November 2025.  Credit growth improved across broad-based, led by personal loans, particularly vehicle loans, alongside healthy credit growth in the services and industrial sectors, MSMEs (micro, small and medium enterprises) remaining a key driver. Gold loans also expanded significantly, registering a surge of 127.6 per cent Y-o-Y.  Additionally, the reported growth was accentuated by the revision in the definition of fortnightly reporting following the Banking Laws (Amendment) Act, 2025. It might be recalled that the Report on Trend and Progress of Banking in India FY25 held that during the year (FY25), banks’ balance sheets expanded at a healthy pace. This was driven by double digit growth in deposits and credit, albeit with some moderation. Profitability remained strong as reflected in an increase in their return on assets.