Bank credit growth stays resilient with 11.5 pc growth: Centre
New Delhi, Dec 16
Bank credit growth in India continues to remain resilient with 11.5 per cent year-on-year growth, reflecting sustained lending momentum across key segments of the economy, the government said on Tuesday.
"As per the latest data released by the Reserve Bank of India, total bank credit stood at Rs 195.3 lakh crore as of November 28, 2025, registering a year‑on‑year growth of 11.5 per cent," an official statement said.
Credit growth has consistently remained above 10 per cent in recent months, the Ministry of Finance said, adding that it indicated stable demand conditions and continued flow of credit to productive sectors.
The expansion in bank credit has been driven primarily by robust demand from the retail and micro, small and medium enterprises (MSME) segments, supported by improving consumption trends and rural economic activity, the report said.
The ministry also cited the positive impact of the recent goods and services tax (GST) rate rationalisation on demand conditions.
Healthy signs of revival in industrial credit and corporate borrowing have contributed to the overall credit offtake, reflecting strengthening economic activity and rising business confidence in India’s growth trajectory, the report added.
The Goods and Services Tax rationalisation has boosted the retail credit market amid better affordability, with credit supply of secured assets such as home loans, auto loans and consumer durable loans showing positive momentum in the September 2025 quarter, a recent report said.
Semi-urban and rural regions accounted for 61 per cent of the overall credit supply in the quarter. New to credit borrowers increased by 5 per cent YoY in the quarter ended September 2025, and borrowers under 35 grew 12 per cent.
While overall asset quality remains stable, recent trends indicate emerging stress in specific loan segments such as micro-LAP and small-ticket housing loans.
— IANS
Reader Comments
Good to see MSMEs and retail driving this growth. As a small business owner, I've felt the easing of credit over the last year. But the article also mentions stress in micro-LAP loans... hope the RBI is keeping a close watch so we don't face another NPA crisis.
Numbers look good on paper, but is this credit reaching the right people? I see so many young friends under 35 taking on personal loans for lifestyle expenses. The 12% growth in young borrowers is a double-edged sword. Financial literacy is key.
The link to GST rationalisation is interesting. Simplifying tax structures seems to be having a positive ripple effect on consumer confidence and borrowing. More stable policies often lead to more stable growth.
Resilient growth indeed! The focus on rural and semi-urban credit is commendable. When villages prosper, the whole nation prospers. Hope this momentum continues and translates into more jobs and higher incomes in the heartland. 🚜
While the headline number is positive, I have a respectful criticism. The government's statement feels like it's only highlighting the good parts. The "emerging stress" in certain loan segments is buried at the end. A more balanced assessment would build greater trust.
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