Page 3 - Credit Growth

State-run banks cautious; target modest 11-13% credit growth in FY26

Bankers said credit growth is expected to be sluggish in FY26 owing to weaker demand across unsecured loans, mortgages

Canara Bank Q4FY results: Net profit rises 33% to Rs 5,004 crore

Canara Bank posted a 33 per cent YoY rise in Q4 net profit to Rs 5,004 crore as other income rose 22 per cent while margins came under pressure amid rate cut transmission

Quicker credit data updates will aid underwriting: TransUnion CIBIL MD, CEO

CIs get fresher data when underwriting or extending additional lines of credit, says Bhavesh Jain

Non-food bank credit growth decelerates to 12% in March 2025, says RBI

The data released by RBI, compiled from 41 select scheduled commercial banks (SCBs) that account for nearly 95 per cent of total non-food credit, highlights notable trends across key economic sector

Credit growth to agriculture slows to 10.4% in March 2025: RBI data

The bank credit growth to the agriculture sector slowed to 10.4 per cent year-on-year for the fortnight ended March 21, while advances to the industry remained flat at 8 per cent, as per the RBI data released on Wednesday. The Reserve Bank of India (RBI) has released the data on sectoral deployment of bank credit collected from 41 select commercial banks, accounting for about 95 per cent of the total non-food credit deployed by all banks taken together. Credit to agriculture and allied activities registered a growth of 10.4 per cent (y-o-y) as of the fortnight ended March 21, 2025, against 20 per cent in the corresponding fortnight of the previous year. "Credit to industry expanded by 8.0 per cent (y-o-y) as on the fortnight ended March 21, 2025, same as in the corresponding fortnight of the previous year," the RBI said. Among major industries, outstanding credit to 'petroleum, coal products and nuclear fuels', 'basic metal and metal products', 'all engineering' and 'construction'

Bank of Maharashtra's credit growth surpasses total deposit growth

The lender's total advances grew by 17.8 per cent year-on-year to Rs 2.4 trillion, while on a quarterly basis, advances were up by 5 per cent

Regulatory easing to support 10.8% credit growth in FY26: Icra

The incremental credit is likely to rise 10.8 per cent to Rs 19-20.5 lakh crore in the current fiscal compared to Rs 18 lakh crore or a 10.9 per cent growth in 2024-25, according to rating agency Icra. In a release on the Indian banking sector outlook, the agency said it expects the regulatory easing seen in recent months to support a credit expansion of about 10.8 per cent in FY2026. Such measures include the repo rate cut, deferment of proposed changes in the liquidity coverage ratio (LCR) framework and additional provisions on infra projects, along with the roll-back of increased risk weights on lending to unsecured consumer credit and non-banking financial companies (NBFCs). "Besides this, the durable liquidity infusion by the Reserve Bank of India through open market operations (OMO) by way of purchases of Government bonds and forex swaps with banks, would aid the liquidity and faster transmission of the ongoing cut in policy rates," it said. The persisting challenges in depos

Bank of Baroda and Bank of India miss FY25 deposit growth guidance

Advances of the bank grew by 20.3 per cent Y-o-Y to Rs 2 trillion

PNB, CSB and several banks see credit growth outpace deposits in Q4

Sequentially, advances grew 2.4 per cent, while deposits grew by 1.7 per cent, the bank said in its quarterly update

Why RBI's new Governor Sanjay Malhotra must ease credit, but not too much

Effective April 1, banks will set aside less capital on loans to better-rated nonbanking financial companies

Bank credit and deposits growth decelerate in third quarter, shows RBI data

Bank credit as well as deposits witnessed deceleration during the October-December quarter sequentially, showed Reserve Bank data released on Friday. Bank credit growth (y-o-y) decelerated to 11.8 per cent in December 2024 from 12.6 per cent in September 2024, while aggregate deposits increased at a marginally lower pace at 11 per cent as compared to 11.7 per cent growth in July-September period. Personal loans, which have large share (31.5 per cent) in total credit, recorded moderation in annual growth to 13.7 per cent (15.2 per cent a quarter ago), according to RBI's data on 'Outstanding Credit of Scheduled Commercial Banks December 2024'. Credit to agriculture and industry sectors also recorded some tempering in the growth. On the other hand, bank lending for trade, finance and professional/ other services accelerated during the third quarter of 2024-25. The data showed that lending to public sector organisations accelerated to 5.4 per cent in December 2024 as compared to 0.3

J'khand's credit potential for FY26 priority sector lending at Rs 88,303 cr

The credit potential for the priority sector lending in Jharkhand has been projected at Rs 88,303 crore for the next fiscal, an increase of about 64 per cent from the current financial year, an official said on Saturday. It was fixed at Rs 54,008.31 crore for the year 2024-25. Priority sector lending (PSL) is a policy tool aimed at ensuring that key sectors crucial to the nation's development receive adequate financial support. Mandated by the Reserve Bank of India (RBI), PSL obligates banks to allocate a specified proportion of their loans to sectors such as agriculture, education, housing, and small industries. "The credit potential for the priority sector in the state has been projected at Rs 88303.77 crore for the year 2025-26, as against Rs 54,008.31 crore for the year 2024-25, showing an increase of 63.50 per cent," the official said. Earlier, Jharkhand Finance Minister Radha Krishna Kishore launched the state Focus paper 2025-26 emphasising the need for sustainable agricult

Credit growth moderates in personal loan segment in Dec: RBI data

Bank credit to personal loan segment moderated to 14.9 per cent year-on-year in December, largely due to decline in growth in 'other personal loans', 'vehicle loans' and 'credit card outstanding', according to Reserve Bank data released on Friday. The RBI has released data on sectoral deployment of bank credit for December 2024 collected from 41 select commercial banks, accounting for about 95 per cent of the total non-food credit deployed by all commercial banks. On a year-on-year (y-o-y) basis, growth in non-food bank credit as on the fortnight ended December 27, 2024 moderated to 12.4 per cent as compared to 15.8 per cent for the corresponding fortnight of the previous year. According to the data, bank credit to agriculture and allied activities registered a growth of 12.5 per cent (y-o-y) as on the fortnight ended December 27, 2024 (19.4 per cent for the corresponding fortnight of the previous year). Further, credit growth to industry remained almost flat at 7.4 per cent ...

Govt approves Mutual Credit Guarantee scheme to strengthen MSME sector

Mutual Credit Guarantee scheme will provide 60% guarantee coverage for loans up to Rs 100 crore

Banking sector funds: Invest now to capitalise on credit growth pickup

The ideal time to invest in sector funds is during a downturn so that investors can capitalise on a turnaround in 1.5-2 years

E-commerce spend driving use of credit cards in non-metros, says Visa

Credit card transactions saw a substantial 175 per cent increase in Tier-III cities, compared to just a 27 per cent increase in Tier-I cities

Muted deposit and credit growth sends PSB stocks into a tailspin

While state-owned Union Bank of India reported a 2.2 per cent sequential growth in advances in Q3FY25, its deposits shrank by 2 per cent during the same period

Banking credit growth to remain subdued around 10% for FY26: ICRA

Credit growth may ease to 9.7-10.3 per cent in FY26, weighed down by the persisting high CD ratio and implementation of the proposed changes in the liquidity coverage ratio (LCR) framework, ICRA said in a report. ICRA has revised its credit growth estimate downwards to 10.5-11 per cent for FY25 from its earlier estimate of 11.6-12.5 per cent. In its recent report, ICRA highlighted that with the banks focusing on reducing their credit-to-deposit (CD) ratio and reducing their exposures to unsecured retail and non-banking financial companies (NBFCs), the overall credit growth has moderated in the past few months, it said. Consequently, credit and deposit growth has almost aligned with each other and ICRA expects the trend to continue, the rating agency said in the report. The persisting high interest rates and the slowdown in credit growth, especially towards high-yielding advances will impact the margins of the banking sector, it said. The capital ratios of several banks remain ...

Credit grows at 10.6% and deposits at 10.7% in November 29 fortnight

Data shows outstanding deposits in the fortnight ending November 29 stood at Rs 220.17 trillion, while outstanding credit stood at Rs 175.09 trillion

Growth in bank credit to NBFCs declines sharply to 6.4%: RBI data

Non-food credit increased at slower clip of 12.8% in October compared to 15.5% a year ago, says RBI