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Bank Credit Slows to 11.1% in FY25: RBI Data on Loans and Deposits

6 June 20251 min read
BANKING & FINANCEBank Credit Slowsto 11.1% in FY25:RBI Data on Loansand Deposits6 June 2025safalsetu.com

Why in the news

RBI data for 2024-25 show slower lending, with private banks hit hardest, and depositors moving from savings accounts to higher-yield fixed deposits.

MeasureEarlierLatest
Credit growth15.3% (FY24)11.1% (FY25)
Retail share of credit24.1% (FY20)31% (FY25)
Individual borrowers’ share41.5% (Mar 2020)47.8% (Mar 2025)
Women borrowers’ share22.0%23.8%
Savings deposit share33.0% (2023)29.1% (Mar 2025)

Key facts

  • Retail credit growth eased to 13.2% yet beat overall growth; consumer durable and other personal loans are nearly one-third of it.
  • Banks cut savings deposit rates to protect net interest margins.
  • Term deposits at 7% or more were 72.7% of FDs in March 2025.

Exam angle

  • Credit growth FY25: 11.1%; retail remains the main driver.

Test yourself

1. According to RBI data, total bank credit growth in FY25 was:

Credit growth slowed to 11.1% from 15.3% in FY24.

2. Retail credit formed what share of total bank credit in FY25 per the RBI data?

Retail share rose to 31% from 24.1% in FY20.

3. Why did banks lower savings deposit rates, as per the FY25 RBI data notes?

Rate cuts on savings deposits were meant to protect net interest margins.