Bank credit to industry grew at a slower pace of 6.5% in August 2025, compared to 9.7% in the same month last year, according to Reserve Bank of India (RBI) data on sectoral deployment of credit released on Tuesday.The data, compiled from 41 scheduled commercial banks (SCBs) that account for nearly 95% of total non-food credit, showed overall non-food bank credit rising 9.9% year-on-year (y-o-y) as of the fortnight ended August 22, PTI reported. This compares with 13.6% growth in the corresponding fortnight a year ago.Credit to micro, small, and medium industries maintained strong growth momentum, while lending to major industries such as ‘all engineering’, ‘vehicles, vehicle parts and transport equipment’, and ‘rubber, plastic and their products’ posted robust y-o-y expansion, RBI noted.In agriculture and allied activities, credit registered annual growth of 7.6% in August, significantly lower than the 17.7% expansion recorded a year earlier.The personal loans segment grew 11.8% y-o-y, slower than 13.9% in August 2024, due mainly to moderation in vehicle loans, credit card outstanding, and other personal loans.Credit to the services sector grew 10.6% in the latest fortnight, compared with 13.9% last year. Lending to non-banking financial companies (NBFCs) showed signs of deceleration, though growth in professional services, computer software, commercial real estate, and trade segments remained robust.
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