Bank retail credit witness sharp slowdown in FY25; drops to 11.6%

Reserve Bank of India data showed the overall bank credit growth declined to 11 per cent in FY25 from 20.11 per cent in FY24

The pace of bank retail lending in India declined sharply to 11.6 per cent year-on-year (Y-o-Y) in 2024-2025 (FY25) from 27.6 per cent in FY24. This is because lenders scaled down disbursements in unsecured loans due to regulatory concerns and high base effect.

 

Reserve Bank of India (RBI) data showed that overall bank credit growth declined to 11 per cent in FY25 from 20.11 per cent in FY24.

 

In absolute terms, bank lending grew by ₹18.11 trillion in FY25 against ₹27.56 trillion in FY24. The data includes the impact of the merger of a non-bank (HDFC) with a bank