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Bank Credit Growth Slows to 10.9% in February 2025

28 March 20251 min read
ECONOMYBank CreditGrowth Slows to10.9% in February202528 March 2025safalsetu.com

Why in the news

Bank lending slowed sharply in February 2025, mainly on weak retail and NBFC credit.

Growth by segment (YoY)

SegmentLatestYear earlier
Non-food credit10.9%20.6%
Retail loans11.7%28.1%
Services12%24.3%
Industry7.3%8.4%

Key facts

  • Retail drag: unsecured personal loans, credit card balances, vehicle loans.
  • Falling NBFC credit hurt services.
  • Bright spots: computer software, professional services, trade.
  • Industries growing strongly: petroleum, coal products and nuclear fuels; engineering and construction; paper.

Exam angle

  • Data as of 21 February 2025.

Test yourself

1. What was non-food bank credit growth (YoY) as of 21 February 2025?

Non-food credit grew 10.9% YoY, against 20.6% a year earlier.

2. What was retail loan growth in February 2025, down from 28.1% a year earlier?

Retail loans grew 11.7% YoY, a sharp slowdown from 28.1%.

3. Which segment's credit growth slowed to 7.3% from 8.4% in the February 2025 bank credit data?

Industrial credit grew 7.3% YoY, down from 8.4%.