Bank credit growth declines sharply to 11% in FY25, shows RBI data

Reserve Bank of India (RBI) data showed deposit growth moderated to 10.3 per cent in the fortnight ended March 21, 2025 (last fortnight of FY25), from 13.5 per cent in FY24

After two years of high growth in the post pandemic phase, the pace of bank credit expansion moderated sharply to 11 per cent year-on-year (Y-o-Y) in FY25 from 20.2 per cent in FY24.

 

The slowdown reflects higher base effect, regulatory actions like higher risk weights to signal stress in retail loans, and the challenge of raising deposits for extending loans, bankers and analysts said.

 

Reserve Bank of India (RBI) data showed that deposit growth moderated to 10.3 per cent in the fortnight ended March 21, 2025 (last fortnight of FY25) from 13.5 per cent in FY24. The data includes the