Non-Food Bank Credit Growth Eases to 10.2% in June 2025
Why in the news
RBI data showed bank lending losing pace by late June 2025, with soft demand across most borrower groups.
Key facts
- Non-food credit growth: 10.2% against 13.8% in the same fortnight of 2024.
- Agriculture: marked decline after a strong year, likely from high base effects and tight rural liquidity.
- Industry: slower despite strong government capex; private investment stayed hesitant.
| Segment | Observation |
|---|---|
| Services, trade, NBFCs | Muted working capital demand, cautious banks |
| Personal loans | Sluggish, mainly unsecured |
| Housing loans | Softer demand amid high property prices |
| Vehicle and card loans | Weak urban consumption |
Reasons
- Seasonal factors in the April-June quarter.
- Compliance overhang from audits and provisioning.
- Borrower caution amid macroeconomic volatility.
Exam angle
- Headline numbers: 10.2% versus 13.8%.
- Three reasons: seasonality, compliance, caution.