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Informist, Friday, May 30, 2025

MUMBAI – Growth in bank credit fell to 11.1% in the financial year 2024-25 (Apr-Mar) from 15.3% a year ago, data released by the Reserve Bank of India Friday showed. The data reflects information collected from all scheduled commercial banks, including rural regional banks, and includes information on type of account, organisation, occupation and category of the borrower, district and population, group of the place of utilisation of credit, rate of interest, credit limit, and amount outstanding, the RBI said. 

Within banks, private-sector banks witnessed the steepest decline as their credit growth moderated to 9.5% in FY25 after sustained credit growth above 15% for the preceding three years. Credit growth was higher in rural, semi-urban, and urban areas compared to metropolitan areas. The share of metropolitan branches in total credit declined to 58.7% in the year ended March from 63.5% five years ago, the data showed.

Personal loans, which include housing loans, education loans, vehicle loans, personal credit cards, consumer durables loans, and other personal loans, grew at a rate of 13.2%, lower than in FY24 but still faster than headline credit growth. The share of housing loans bearing an interest rate of 9% and above came down to 36.8% in March from 54.5% a year ago, which signifies a decline in the cost of housing loans, the central bank said.

Loans for consumer durables and other personal loans accounted for nearly a third of the total personal loans, the RBI said. The share of these loans with an interest rate of 11% or higher fell to 47.4% in March from 50.3% at the end of FY24.

Loans to industry accounted for nearly a fourth of the total bank credit and increased at a rate of 9.4% in the year ended March, down from 10.4% a year ago. The share of individuals in total credit maintained its momentum and stood at 47.8%, as compared to 41.5% in 2020. Within individuals, the share of female borrowers also rose to 23.8% from 22.0% in 2020.  End

Reported by Kabir Sharma

Edited by Rajeev Pai

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