Bank credit grew 10% y-o-y to ₹188.57 lakh crore in September: RBI
2 min read
Credit to MSME sector continued to grow in double-digits.
| Photo Credit:
REUTERS
Bank lending excluding food credit expanded by 10% year-on-year, reaching ₹188.57 lakh crore as of September 19, according to the Reserve Bank of India’s sectoral credit deployment data.
Agricultural credit growth rose 9% annually, slowing from 16.4% during the same period last year. Industrial credit maintained 7.3% growth year-on-year, compared to 8.9% in the previous year’s corresponding fortnight.
MSME credit sustained strong double-digit expansion, with significant growth observed across major industries including engineering, infrastructure, textiles, and vehicle manufacturing sectors.
Service sector credit registered 10.2% annual growth, though slower than the 13.7% expansion recorded last year. While NBFC credit growth moderated, segments like tourism, hospitality, software development, and commercial real estate showed substantial increases.
Personal loan growth eased to 11.7% annually from 13.4% last year, primarily due to reduced growth in consumer credit categories including vehicle financing and credit card balances.
Interest Rate Trends
Fresh rupee loan rates declined to 8.50% in September 2025 from 8.74% in August. Outstanding loan rates decreased to 9.26% from 9.32% during the same period.
The benchmark 1-year MCLR rate softened to 8.55% in October, down from 8.60% in the previous month.
New fixed deposit rates edged up to 5.60% in September, while existing deposit rates eased to 6.82% from 6.87% in August.
Published on October 31, 2025
