RBI Policy
Banks' fincl parameters remain robust, credit has seen uptick
This story was originally published at 12:43 IST on 5 December 2025
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--RBI Malhotra: Fincl parameters of banks remain robust
--RBI Malhotra: Total flow of resources to commercial sector strengthened
--RBI Malhotra: Bank credit has seen uptick
--RBI Malhotra: Outstanding credit from bank, non-bank sources up 13% YoY
--RBI Malhotra: Large industries recorded credit growth
MUMBAI – The Reserve Bank of India's Governor Sanjay Malhotra Friday said the financial parameters of banks remain robust and that the credit facilities are seeing an uptick. This growth was supported by sustained lending to retail and service sector segments, the governor said after announcing the fifth bi-monthly monetary policy for 2025-26 (Apr-Mar).
"...the system-level parameters of NBFCs (non-banking financial services companies), too, are sound, with adequate capital position and improved gross non-performing asset ratios," Malhotra said. The buoyant credit flow to micro, small and medium enterprises drove industrial credit growth, he said, adding that large industries, too, recorded better growth in credits.
Supported by greater non-bank intermediation, the total flow of resources to the commercial sector strengthened, Malhotra said. So far in FY26, the total flow of resources rose to INR 20.1 trillion from INR 16.5 trillion in the year-ago period. Outstanding credit from bank and non-bank sources grew 13% on year, the apex bank governor said.
The Monetary Policy Committee Friday unanimously reduced the repo rate by 25 basis points to 5.25%, trimming key rates by 125 bps so far in 2025. While this was largely in line with expectations, there was a section of market participants who expected the rate to be kept steady at 5.50%. The Committee retained its neutral stance, while external member Ram Singh of the policy committee was of the view that the stance should be changed to accommodative. End
Reported by Anjana Therese Antony
Edited by Deepshikha Bhardwaj
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