Bank lending to services, agriculture slows in June

Mumbai: Bank lending slowed across sectors in June, although the decline in the pace of credit growth was more visible for services and agriculture sectors, compared with advances to retail and industry. On a year-on-year (YoY) basis, non-food bank credit climbed 10.2% in the fortnight ended June 27, 2025, compared with 13.8% during the corresponding fortnight of the previous year, showed the data on sectoral deployment of bank credit published by the Reserve Bank of India (RBI) on Thursday.

Credit to agriculture and allied activities registered a YoY growth of 6.8%, compared with 17.4% in the corresponding fortnight of the previous year.

Credit to industry recorded a YoY growth of 5.5% compared with 7.7% in the corresponding fortnight of last year. Credit to micro and small and medium industries continued to grow steadily. Among major industries, outstanding credit to 'all engineering', 'construction' and 'textiles' recorded an accelerated YoY growth, RBI said.

Credit to services sector moderated to 9.6% YoY, vs 15.1% in corresponding fortnight of previous year, due to a slowdown in credit to 'non-banking financial companies'.

Credit growth to 'computer software' and 'professional services' segments remained robust. Credit to personal loans segment registered decelerated YoY growth of 14.7%, vs 16.6% a year ago, due to moderation in growth of 'other personal loans', 'vehicle loans' and 'credit card outstanding'.