SDG 8: Decent Work & Economic Growth | SDG 9: Industry, Innovation and Infrastructure
Institutions: Reserve Bank of India | Ministry of Finance
Data from 41 scheduled commercial banks, covering ~95% of total non-food credit, show that overall bank credit grew 9.9% year-on-year as of August 22, 2025 - slower than 13.6% a year earlier.
Agriculture and allied activities: Growth eased to 7.6%, from 17.7% last year.
Industry: Credit rose by 6.5%, down from 9.7% last year, though loans to MSMEs and industries such as engineering, vehicles, and rubber-plastics remained buoyant.
Services: Expanded by 10.6%, with strong growth in professional services, software, real estate, and trade, though credit to NBFCs decelerated.
Personal loans: Grew by 11.8%, slower than 13.9% last year, reflecting moderation in vehicle loans, credit cards, and other personal loans.
Slower credit growth suggests moderation in demand and cautious lending by banks. The composition highlights resilience in MSMEs and services but also signals potential stress in agriculture and household credit - factors relevant for monetary policy calibration and sectoral interventions.
What are Scheduled Commercial Banks? β Banks that are listed in the Second Schedule of the RBI Act, 1934 and meet criteria like paid-up capital and reserves of at least βΉ5 lakh. They include public sector banks, private sector banks, foreign banks, regional rural banks (RRBs), and small finance banks. SCBs can access RBI facilities (like borrowing at repo) and are subject to its regulations.
What is Non-Food Credit? β Bank lending that excludes loans for purchasing food grains under government operations. It reflects credit to households, businesses, services, and industry, and is a key gauge of economic activity.
Follow the full news here: RBI Press Release on Sectoral Deployment of Bank Credit, August 2025