Credit Growth Dynamics: A Mid-February Snapshot

In February 2025, credit to industry grew by 7.3%, down from 8.4% the previous year. Key sectors like engineering and construction saw accelerated credit growth. Agricultural credit increased by 11.4%, while credit to services decelerated. Personal loans grew by 14% amid declines in other loan segments.

According to the Reserve Bank, industry credit expanded by 7.3% in the fortnight ending February 21, 2025, a slowdown from the previous year's 8.4% growth rate.

Notable increases were observed in credit allocated to sectors such as petroleum, construction, and paper products. Agricultural credit saw an uptick of 11.4%, while non-food bank credit grew by 12% overall.

Despite a slowdown in credit to services, 'computer software' and 'professional services' observed robust growth. Meanwhile, the personal loans segment registered slower growth at 14%, with declines in sectors like credit cards and vehicle loans.

(With inputs from agencies.)