PSBs share in loans rises sharply in FY25: Monetary Policy Report

State-owned lenders use SLR surplus for disbursements

The pace of loan growth among public sector banks (PSBs) has seen a surge in the financial year 2024-25, and this is an exception to the overall moderation in bank credit during FY25.

 

PSU banks’ share in incremental credit rose to 57.3 per cent in March from 51.7 per cent a year ago, according to the Reserve Bank of India’s (RBI’s) Monetary Policy Report (April 2025).

 

In contrast, the share of private lenders declined to 39.1 per cent in March from 46.6 per cent in March 2024.

 

Foreign banks saw their share in incremental credit at 3.6 per cent