Non-Food Bank Credit Growth Eases to 9.8% in May 2025
Why in the news
Bank lending lost steam in May 2025, with consumer loans pulling the figure down.
Key facts
- Non-food credit growth: 9.8% YoY, May 2025.
- Year-ago rate: 16.2%.
- Weakest area: retail lending, i.e. personal loans, credit cards and vehicle finance.
| Month | Growth (YoY) |
|---|---|
| May 2024 | 16.2% |
| May 2025 | 9.8% |
Concerns
- Soft household borrowing is the main drag on total credit growth.
- A slower credit cycle can weigh on bank earnings and consumption-linked sectors.
Exam angle
- Data source: RBI.
- Gap between the two readings: about 6.4 percentage points.