Bank credit growth slows to 6.7% in first half of April, shows RBI data

Bank credit growth slowed to 6.7% in April, with faster growth in metals and textiles but slower in infrastructure and agriculture. RBI data highlights changes in services and personal loans credit

Bank credit to the industrial sector grew at a slower rate of 6.7 per cent in the fortnight ending April 18, 2025, compared to 6.9 per cent during the same period last year, according to data released by the Reserve Bank of India (RBI) on Friday.

 

Among key industries, the RBI data showed faster year-on-year credit growth in several sectors. These included basic metals and metal products, all engineering, vehicles, vehicle parts and transport equipment, textiles, and construction.

 

However, credit growth in the infrastructure sector slowed down during the same period.

 

Credit to agriculture and allied activities also recorded a significant drop in growth, falling to 9.2 per cent from 19.8 per cent in the corresponding fortnight of the previous year.

 

Overall non-food credit growth

On a broader scale, non-food bank credit increased by 11.2 per cent year-on-year as of April 18. This was a decline from 15.3 per cent growth in the same fortnight of 2024.

 

The RBI noted that the figures for April 2025 cover data from 41 selected scheduled commercial banks. These banks contribute roughly 95 per cent of the total non-food credit extended by all scheduled commercial banks.

 

The RBI highlighted changes in credit to the services sector, which grew at a moderated rate of 11.2 per cent year-on-year, down from 19.5 per cent the previous year. This slowdown was mainly due to reduced credit growth to non-banking financial companies (NBFCs).

 

Meanwhile, credit to the trade and computer software sectors remained strong.

 

In the personal loans segment, credit growth slowed to 14.5 per cent, compared to 17 per cent a year earlier. This decline was largely driven by slower growth in other personal loans, vehicle loans, and credit card outstanding balances.