Banks’ non-food credit growth slows to 9.9% in July 2025: RBI data | Business News

The growth in credit to personal loans decelerated year-on-year (y-o-y) to 11.9 per cent, compared with a 14 per cent growth a year ago, largely due to moderation in growth of other personal loans (8.1 per cent vs 12.7 per cent), vehicle loans (8.9 per cent vs 14.6 per cent).

Total growth in credit card outstanding declined to 5.6 per cent to Rs 2.91 lakh crore in July 2025, as against a growth of 22 per cent in the year-ago period, the data showed. Housing loans grew by 9.6 per cent to Rs 30.81 lakh crore in the reporting month, compared to a growth of 12.8 per cent in the year-ago period.

In July, advances to agriculture and allied activities registered a growth of 7.3 per cent at Rs 23.14 lakh crore, as against a growth of 18.1 per cent at Rs 22.87 lakh crore during the same period a year ago.

The growth in credit to industry moderated to 6 per cent at Rs 39.38 lakh crore as on July 2025, compared to a growth of 10.2 per cent in July 2024. Credit to micro and small, and medium industries continued to grow at a robust pace of 21 per cent and 14.7 per cent, respectively in the reporting month.

Among major industries, outstanding credit to all engineering, vehicles, vehicle parts and transport equipment, rubber, plastic and their products and gems and jewellery recorded healthy year-on-year (y-o-y) growth, the RBI data showed.

The services sector recorded a credit growth of 10.6 per cent y-o-y as against a 14.5 per cent rise last year. Growth in credit to non-banking financial companies (NBFCs) decelerated to 2.6 per cent from 12.7 per cent growth registered in the year-ago period, RBI data showed.