Mumbai, Growth in bank credit to industries declined to 7.6 per cent in June 2025 from 11.3 per cent a year ago while the personal loans segment continued to grow faster than overall advances, according to RBI data released on Friday.
The Reserve Bank data also showed that bank credit growth decelerated to 9.9 per cent in June 2025 from 15 per cent in June 2024.
The share of loans bearing interest rates below 9 per cent increased to 54.1 per cent in June 2025, from 43.2 per cent in the previous year, with the easing of policy rates, the central bank said.
"In line with monetary policy actions, the weighted average lending rate (WALR) on outstanding credit declined by 39 basis points (bps) during April-June 2025, with reductions observed across all major sectors," RBI said.
Personal loans continued to grow faster than overall credit, gradually increasing their share to 32 per cent of total credit by June 2025; within personal loans, housing loans accounted for more than half.
" Industrial credit growth (y-o-y) declined to 7.6 per cent in June 2025 from 11.3 per cent a year ago; its share in total credit declined marginally to 23.3 per cent in Q1: 2025-26 from 23.8 per cent a year ago," it said.
Further, the share of individuals in total credit rose to 47.2 per cent in June 2025, up from 46.5 per cent in June 2024. Growth in credit to female borrowers continued to outpace that of males, lifting women's share within credit to individuals to 23.7 per cent from 23.4 per cent in June 2024.
Public sector banks recorded higher credit growth (11 per cent) than private sector banks (8.3 per cent) and foreign banks (8.0 per cent) in June 2025, sustaining their leading position of 53.7 per cent in total credit.
Another set of data showed that bank term deposits recorded a growth of 13.5 per cent, significantly outpacing the savings deposits growth of 5.4 per cent in June 2025.
Consequently, the share of term deposits in total deposits soared to 62.2 per cent from 61 per cent in June 2024.
"Nearly 70 per cent of term deposits accounted for the original maturity bucket of one to three years in June 2025, whereas around 20 per cent of term deposits were short-term deposits with a maturity of less than one year," RBI said.
Reflection of recent monetary easing became evident in the interest rate structure of term deposits as the proportion of such deposits bearing higher interest rates of '7 per cent and above' declined to 65 per cent in June 2025, compared to that of 66.9 per cent a year ago.
"The share of term deposits of size 'Rs one crore and above' inched up to 45.7 per cent in June 2025 as compared to 44.8 per cent a year ago," it said.
The share of 'Household' deposits witnessed a modest decline in the recent period to 59.9 per cent in June 2025 as compared to that of 60.8 per cent in June 2024.
The corresponding share of 'Financial Corporations' moved up to 7 per cent in June 2025 as compared to that of 6 per cent a year ago.
Senior citizens owned 20.4 per cent of the total deposits as at end-June 2025, according to the data.
Deposits growth of public sector banks and private sector banks stood at 10.2 per cent and 12.4 per cent, respectively, in June 2025; whereas their corresponding shares in deposits were hovering at 57.3 per cent and 36.0 per cent, respectively.
The top five states/ Union Territories - Maharashtra, NCT of Delhi, Karnataka, Uttar Pradesh, and Tamil Nadu - collectively accounted for 54.3 per cent of total deposits and 47.8 per cent of 'Household' deposits as at end-June 2025. PTI
The Reserve Bank data also showed that bank credit growth decelerated to 9.9 per cent in June 2025 from 15 per cent in June 2024.
The share of loans bearing interest rates below 9 per cent increased to 54.1 per cent in June 2025, from 43.2 per cent in the previous year, with the easing of policy rates, the central bank said.
"In line with monetary policy actions, the weighted average lending rate (WALR) on outstanding credit declined by 39 basis points (bps) during April-June 2025, with reductions observed across all major sectors," RBI said.
Personal loans continued to grow faster than overall credit, gradually increasing their share to 32 per cent of total credit by June 2025; within personal loans, housing loans accounted for more than half.
" Industrial credit growth (y-o-y) declined to 7.6 per cent in June 2025 from 11.3 per cent a year ago; its share in total credit declined marginally to 23.3 per cent in Q1: 2025-26 from 23.8 per cent a year ago," it said.
Further, the share of individuals in total credit rose to 47.2 per cent in June 2025, up from 46.5 per cent in June 2024. Growth in credit to female borrowers continued to outpace that of males, lifting women's share within credit to individuals to 23.7 per cent from 23.4 per cent in June 2024.
Public sector banks recorded higher credit growth (11 per cent) than private sector banks (8.3 per cent) and foreign banks (8.0 per cent) in June 2025, sustaining their leading position of 53.7 per cent in total credit.
Another set of data showed that bank term deposits recorded a growth of 13.5 per cent, significantly outpacing the savings deposits growth of 5.4 per cent in June 2025.
Consequently, the share of term deposits in total deposits soared to 62.2 per cent from 61 per cent in June 2024.
"Nearly 70 per cent of term deposits accounted for the original maturity bucket of one to three years in June 2025, whereas around 20 per cent of term deposits were short-term deposits with a maturity of less than one year," RBI said.
Reflection of recent monetary easing became evident in the interest rate structure of term deposits as the proportion of such deposits bearing higher interest rates of '7 per cent and above' declined to 65 per cent in June 2025, compared to that of 66.9 per cent a year ago.
"The share of term deposits of size 'Rs one crore and above' inched up to 45.7 per cent in June 2025 as compared to 44.8 per cent a year ago," it said.
The share of 'Household' deposits witnessed a modest decline in the recent period to 59.9 per cent in June 2025 as compared to that of 60.8 per cent in June 2024.
The corresponding share of 'Financial Corporations' moved up to 7 per cent in June 2025 as compared to that of 6 per cent a year ago.
Senior citizens owned 20.4 per cent of the total deposits as at end-June 2025, according to the data.
Deposits growth of public sector banks and private sector banks stood at 10.2 per cent and 12.4 per cent, respectively, in June 2025; whereas their corresponding shares in deposits were hovering at 57.3 per cent and 36.0 per cent, respectively.
The top five states/ Union Territories - Maharashtra, NCT of Delhi, Karnataka, Uttar Pradesh, and Tamil Nadu - collectively accounted for 54.3 per cent of total deposits and 47.8 per cent of 'Household' deposits as at end-June 2025. PTI
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