Bank Credit Demand From Industry Strengthens As Loan Growth Picks Up Pace

Latest data released by the Reserve Bank of India shows that non-food credit grew by 11.5 per cent year on year as of November 28, 2025, reflecting sustained lending activity across the economy. 

The data forms part of the RBI’s Sectoral Deployment of Bank Credit statement published on December 9, 2025, available under the RBI’s Weekly Statistical Supplement.

This improvement in bank credit demand highlights growing confidence among businesses and consumers, even as banks continue to maintain cautious underwriting standards.

Industrial Credit And Retail Loans Drive Growth

Loan demand from industry grew by 9.6 per cent year on year till November 2025, improving from 8.3 per cent in the corresponding period last year, according to the RBI via ScanX Trade, December 2025.

Credit to micro and small enterprises and medium industries continued to show double digit growth, underscoring stronger demand from smaller manufacturers and service providers. Among large industries, credit growth remained buoyant in infrastructure, engineering, textiles, and petroleum, coal products and nuclear fuels.

Retail credit growth moderated slightly to 12.8 per cent year on year, compared with 13.4 per cent a year earlier, indicating a gradual cooling in unsecured personal lending.

Retail Credit Performance Snapshot

Credit card outstanding growth declined sharply to 2.4 per cent year on year, compared with 18.1 per cent last year, while housing loan growth eased to 9.9 per cent from 12.2 per cent earlier. In contrast, vehicle loans recorded stronger growth at 12.4 per cent, up from 10.3 per cent a year ago.

Gold loans continued to outperform all other retail segments, registering 125.3 per cent year on year growth, compared with 77.3 per cent in November 2024.

Services And NBFC Credit Show Stability

Credit growth to the services sector stood at 11.7 per cent year on year, marginally lower than 12.8 per cent a year ago, indicating stable borrowing by trade, transport and commercial services.

Lending to non banking financial companies also improved, with loan growth rising to 9.5 per cent, compared with 7.5 per cent in the same period last year. Trade and commercial real estate segments continued to record healthy credit expansion, though at a slightly slower pace.
 

Earlier in the year, industrial credit growth had lagged retail loans, with industry expansion hovering near 7.3 per cent in September 2025, while overall non food credit was around 10.2 per cent.

The recent acceleration reflects improving corporate balance sheets, better asset quality across banks, and stronger investment pipelines. Public sector banks had also flagged improving credit demand in the second half of FY26, supported by infrastructure spending and private capex revival.

What Stakeholders Are Saying

Bankers and analysts have attributed the recent pickup in bank credit demand to improving economic conditions, healthier corporate balance sheets, and steady capital expenditure activity. 

Public sector banks have also indicated stronger loan enquiries in the second half of FY26, supported by infrastructure-led spending and a gradual revival in private investment, a trend that has also been highlighted in analysis by LoansJagat.

Conclusion

The latest RBI data confirms that bank credit demand is gaining momentum, led by stronger industrial borrowing and resilient retail lending. 

With asset quality remaining stable, loan growth is expected to stay steady in the coming months.
 

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