Bank Credit Trends Show Slower Growth in Industrial Sector

According to recent data from the Reserve Bank of India (RBI), the growth in bank credit to the industrial sector moderated to 7.3% in September, down from 8.9% in the same period the previous year.

The RBI's release highlighted that non-food bank credit expanded by 10.2% year-on-year as of September 19, 2025, a decrease from 13% growth in the same fortnight in 2024. This annual publication involves contributions from 41 commercial banks, which together account for 95% of total non-food credit issuance.

The data further revealed that while credit to major industries showed solid growth, particularly in engineering, infrastructure, textiles, and transport, segments such as agriculture and allied activities and the service industry also reported significant increases. Meanwhile, the growth in credit to non-banking financial companies (NBFCs) slowed, despite robust performance in sectors like tourism and real estate. Personal loan growth also witnessed a slowdown, mainly due to reduced expansion in vehicle and credit card loans.