Archive · 2 Aug 2025
SBI: Corporate Funding Choices Slowing Bank Credit
Banks provide loans to businesses, but companies are now getting money from other sources because interest rates are low.
A recent report suggests that bank lending is slowing down.
Credit growth slowed in July, compared to last year.
However, loans to small businesses continue to grow quickly.
Meanwhile, people are putting more money into bank deposits.
Bank credit growth is expected to remain low due to corporate funding choices.
Corporates are using alternative funding sources in the low-interest rate environment.
Bank credit growth slowed to 9.8% as of July 11, 2025, compared to 14.0% last year.
MSME sector credit growth remains higher at 21.8%.
Deposits are growing faster than credit.
- Who
- Banks and Corporates.
- What
- Bank credit growth is expected to remain low.
- When
- As of July 11, 2025, and FY26.
- Where
- India
- Why
- Corporates are opting for other funding sources in the low-interest rate environment.
- Headline Credit Growth (June 2025)
- 9.5%
- Credit Growth (July 11, 2025)
- 9.8%
- Credit Growth (July 11, 2024)
- 14.0%
- MSME Credit Growth
- 21.8%
- Deposit Growth (YTD)
- 3.3%
- YTD Credit Growth (April-July)
- 1.2%
