Bank credit to industry slowed to 4.9% at ₹38.7 lakh crore in the fortnight ended May 30, 2025, against 8.9% growth in the corresponding period of the previous year, according to RBI’s sectoral credit report. The lending stood at ₹36.9 lakh crore in the same period last year.
Lending to micro/small industries slowed to 13.7% in the fortnight ended May 30, 2025 from 15.5% in the same period last year. Growth rate of loans to large industries slowed to 1% as of May 30, 2025, from 7.1% in the year-ago period. Loan growth increased to 16.8% in medium enterprises in the reporting period from 15.5% in the previous year.
Credit to agriculture and allied activities increased 7.5% in the fortnight ended May 30, 2025, as against a growth rate of 21.6% in the year-ago period, the RBI report said.
Bank lending to the services sector, too, grew just 9.4% as of May 30, 2025, as against 20.7% in the year-ago period. Non-banking finance companies (NBFC) loans to services sector declined 0.3% in the reporting period as against a growth of 16%, according to the report. Personal loan growth slowed to 13.7% in the period under review as against 19.3% in the same period last year.
Loans against gold jewellery doubled in the fortnight ended May 30, 2025, as against a growth rate of 30% in the corresponding period of 2024, possibly because of the increasing gold prices. Lending on other categories within personal loans slowed and consumer durable loans declined more than 3% in the reporting period, according to the report.
In the priority sector lending category, housing loans were stagnant in the past month as against a 7.8% growth in the same period previous year.
Loans to renewable energy category doubled in the fortnight ended in May 30, 2025, as against 25% increase in the previous year. Housing loans declined 1.6% in the period as against a growth rate of 22% in the fortnight ended June 2 , 2024, the report added.
Published – June 30, 2025 09:22 pm IST
