The credit growth of Scheduled Commercial Banks (SCBs) has moderated to 9.6 per cent as on 13 June 2025, a sharp decline from 19.1 per cent recorded a year ago, according to a recent report by the State Bank of India (SBI).
Credit growth in the economy is influenced more by overall economic activity than by the size of the liquidity surplus, according to a recent report by Standard Chartered, an international bank.
Loan growth for non-banking financial companies (NBFCs) is expected to remain steady in the first quarter of FY26, rising by 19 per cent compared to the same period last year, and 4 per cent over the previous quarter, according to a recent report by Morgan Stanley.
Credit demand in rural and semi-urban areas has remained relatively strong as compared to metro and urban areas, even as overall credit enquiries witnessed moderation in the country.
Indian banks are expected to maintain steady performance across most credit metrics in the financial year 2025-26 (FY26), though earnings may come under pressure, according to a recent report by Fitch Ratings.
The credit growth of Indian banks moderated in the Financial Year 2025, yet Public Sector Banks (PSBs) gained the market share, outperforming their Private Banks (PVBs) counterparts, according to a report by the Union Bank of India.
In the current fortnight, deposit growth has outpaced credit growth and credit offtake and deposit growth has cooled, according to a report by CareEdge.
The recent cut in the Cash Reserve Ratio (CRR) during the monetary policy announcement by the Reserve Bank of India is expected to create room for additional credit growth of 1.4-1.5 per cent, according to a report by the State Bank of India (SBI).
The Indian banking and financial services industry (BFSI) is currently experiencing a dynamic period characterised by moderate credit growth expectations alongside evolving profitability pressures, according to a report by Boston Consulting Group (BCG).
Non-Banking Financial Companies (NBFCs) have significantly outpaced commercial banks in credit growth during Fiscal Year 2025, according to a report by Boston Consulting Group (BCG).
The report mentioned, "We anticipate the MPC to cut rate by 25bp and potentially guide for more cuts. Demand conditions continue to often, as seen in slowing credit growth, auto sales, RE sales and HH wages while inflation too has turned quite soft, hovering below 4 per cent on a 3MMA basis,
The credit growth of banks slowed to 9.8 per cent in May 2025 as compared to a strong growth of 19.5 per cent recorded in the same period last year, according to a report by the State Bank of India (SBI).