Archive · 30 Jun 2025
RBI: Bank Credit Growth Slows; GNPAs Decline to Historic Low
Imagine banks lending money to businesses and people.
Recently, banks lent less money to industries than they did last year, which could mean slower growth for some companies.
At the same time, the amount of bad loans, or debts people can't pay back, is the lowest it's been in a long time.
However, the amount of bad loans might increase slightly in the next couple of years, according to the Reserve Bank of India.
Bank credit to industry grew 4.9% in May 2025, down from 8.9% the previous year.
Non-food credit grew 9.8% year-on-year in the fortnight ending May 30, 2025.
Gross Non-Performing Assets (GNPAs) in the banking system hit a multi-decadal low of 2.3% in March 2025.
GNPAs may increase to 2.6% by March 2027, according to an RBI report.
Loan write-offs were a key factor in reducing GNPAs over the last five years.
- Who
- The Reserve Bank of India (RBI)
- What
- Bank credit to industry and overall non-food credit growth figures were released, and the gross non-performing assets (GNPAs) declined.
- When
- Data is for the fortnight ended May 30, 2025, and March 2025.
- Where
- India
- Why
- To provide insights into banking sector performance and financial stability.
Economic Impact
Data Results
Economic Outlook
Economic Impact
Slower credit growth to industry could mean economic slowdown.
Data Results
Declining GNPAs indicates improved financial health.
- Industry Credit Growth (May 2025)
- 4.9%
- Industry Credit Growth (Previous Year)
- 8.9%
- Non-food Credit Growth (YoY)
- 9.8%
- GNPAs (March 2025)
- 2.3%
- Projected GNPAs (March 2027)
- 2.6%
Sources
India's new infrastructure lending rules to support loan growth, Moody's says
India's industrial production rises 1.2% in May
RBI Data Alert: Growth In Bank Loans To Industries Nearly Halves — What Slower Credit Could Mean For Jobs And Economy
