Archive · 2 Oct 2025
Bank Credit Growth Against Shares Slows Down
The amount of money banks are lending against shares is growing much slower than before.
This slowdown is due to investors being cautious and the central bank, RBI, keeping a closer eye on lending.
The RBI recently announced plans to increase the amount of money people can borrow against their shares, which could help investors.
This change may encourage more people to invest and benefit high-net-worth individuals, family offices and funds.
Bank credit growth against shares hit a 19-month low in August.
Credit grew by 0.9% year-on-year in August.
Slowdown driven by market caution and regulatory oversight.
RBI announced a measure to raise loan limits against shares.
New limits may provide improved liquidity to investors.
- Who
- Reserve Bank of India (RBI)
- What
- Slowdown in bank credit growth against shares.
- When
- August (data released Tuesday)
- Where
- India
- Why
- Market caution and stricter regulatory oversight.
Factors Leading to Slowdown
Potential Benefits
Market Concerns
Factors Leading to Slowdown
Subdued equity market performance and risk appetite among lenders and borrowers
Potential Benefits
RBI is introducing measures to increase the loan limit to boost market
- Credit Growth (Aug)
- 0.9% YOY (against 26.8% last year)
- Credit Value (Aug)
- ₹9,807 crore
- Previous High
- ₹10,488 crore (April)
- RBI Policy
- Increased loan limit against shares to ₹1 crore per individual
Sources
RBI to remove ₹10,000 crore ceiling for bank loans to corporates
RBI drops proposed restriction on bank-NBFC overlap
India central bank allows banks to fund acquisitions, lend more for IPOs
RBI announces host of measures to improve flow of Bank credit
RBI Banking Reforms: Indian corporates to benefit from cheaper rupee funds for M&A, say experts
RBI to issue draft ECL guidelines for banks soon
Markets rebound after 8-day slump; Sensex jumps over 700 points post RBI policy
Bulls prowl D-Street: Sensex jumps 716 points
Reserve Bank to link deposit insurance premiums to bank risk
RBI removes bar on biz overlap by banks, group entities
RBI eases lending norms for IPO & LAS
Large exposure framework set to be withdrawn
RBI to ease norms for banks’ corporate exposure via market securities, to repeal earlier framework
RBI to relax curbs on loans against shares, IPO financing
RBI targets credit flow: Central bank holds rates, brings broad reforms as growth outlook brightens
RBI Raises IPO Financing Limit To Rs 25 Lakh And Loan Against Shares To Rs 1 Crore
One of the world's most liquid market just got hotter
RBI raises IPO financing limit to Rs 25 lakh, allows more loan against shares
'One episode of financial instability can take us many years behind'
Banks can now fund India Inc's M&A drive
RBI unlocks capital market liquidity with funding boost at a time markets are flat: Here’s how the measures would work
Banks’ enhanced lending to deepen stock markets