Credit Crunch: A Closer Look at Bank Loan Trends

In March 2025, bank credit growth to agriculture slowed to 10.4% y-o-y, and industry advances remained at 8%. Credit grew in services by 13.4% and personal loans by 14%, highlighting shifts in lending dynamics affecting varied economic sectors, according to recent data from the Reserve Bank of India.

Bank credit growth to the agriculture sector witnessed a significant slowdown, registering a 10.4% year-on-year increase as of March 21, 2025, according to the Reserve Bank of India's data released on Wednesday.

The RBI's latest report sheds light on the sectoral deployment of bank credit, revealing that advances to industry stayed flat at 8% amid varied growth in other sectors.

Lending to services saw a 13.4% rise, while personal loans increased by 14%, illustrating a dynamic financial landscape driven by consumer demands and industry changes.