The banking system’s non-food credit growth slowed in January 2025 to 12.5 per cent year-on-year as compared with16.2 per cent in the year ago period.

This is due to moderation in credit growth in services and personal loans segments even as credit growth in agriculture and allied activities and industry picked up.

However, non-food credit growth in January 2025 is at a three-month high, according to the Reserve Bank of India.

Credit growth to services sector moderated to 13.8 per cent y-o-y (21.0 per cent for the corresponding year ago period), with a decelerated growth in credit to ‘non-banking financial companies’ (NBFCs) and trade segments. However, credit growth (y-o-y) to ‘computer software’ accelerated, per RBI data on sectoral deployment of bank credit for the month of January 2025.

Credit to personal loans segment registered a growth of 14.2 per cent yoy, as compared with 18.2 per cent a year ago, largely due to decline in growth rate in ‘other personal loans’, ‘vehicle loans’ and ‘credit card outstanding’ segments.

Two segments

Credit to agriculture and allied activities registered a growth of 12.2 per cent yoy (20.0 per cent).

Credit to industry recorded a growth of 8.2 per cent yoy, compared with 7.5 per cent for the corresponding fortnight of the previous year.

Among major industries, outstanding credit to ‘petroleum, coal products and nuclear fuels’, ‘basic metal and metal product’, ‘chemicals and chemical products’ and ‘all engineering’ recorded an accelerated growth, RBI said.