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Fresh RBI report shows Gujarat ahead again, Maharashtra steady at second, and private investment costs sliding in FY25.
Why do banks continue to back Gujarat projects more than anywhere else? The new Reserve Bank of India (RBI) report, released in September 2025, provides the answer.
It says Gujarat continues to top state-wise bank-backed investment performance in India. Maharashtra stands second in the bank-supported investment ranking, with both states leaving others far behind.
The RBI’s latest study, titled Basic Statistical Returns on Projects Financed by Banks and Financial Institutions 2024-2,5, revealed the current picture. In FY25, banks and financial institutions across India supported 907 projects.
The total project cost reached ₹3.67 lakh crore. Gujarat received 152 projects, the highest in the country. Maharashtra came second with 111 projects, and Uttar Pradesh stood third with 78 projects.
These numbers reflect not just one year’s success but a continuation of Gujarat’s run since FY2015. Gujarat has stayed ahead in bank-financed project approvals for more than ten years. Maharashtra has consistently taken the second spot in the last four years.
Together with Andhra Pradesh and Rajasthan, the top five states controlled nearly 60 percent of total project costs in FY25.
The pattern is clear. Bank-backed projects are not evenly spread across India. Gujarat continues to draw the largest number, followed by Maharashtra and Uttar Pradesh.
Maharashtra’s position is firm. With 111 projects sanctioned in FY25, the state holds on to second place. Uttar Pradesh, which once held that spot, is now third. Maharashtra’s progress shows a consistent presence in the RBI’s annual review of projects financed by banks.
In FY24, Gujarat had 154 projects, accounting for nearly 14.7 per cent of all bank-financed projects in cost terms. Maharashtra’s figures from FY24 were smaller but showed upward momentum. In FY25, Gujarat dropped slightly to 152 projects, while Maharashtra closed in at 111.
The Gujarat vs Maharashtra investment comparison 2025 shows how Maharashtra is narrowing the gap, though Gujarat still remains comfortably ahead.
The concentration of financing tells its own story. According to the RBI report of 2025, Gujarat, Maharashtra, Uttar Pradesh, Andhra Pradesh, and Rajasthan together made up nearly 60 per cent of project costs. This means that more than half of all bank-financed projects in cost terms are locked within five states.
This concentration raises questions about balance in state-wise bank-backed investment performance in India. It also points to gaps in policy, since some states continue to lag behind despite national lending programmes.
The theoretical coverage of this RBI report means an official statistical mapping of projects financed by banks in one financial year. The RBI collects, analyses, and publishes this data to show the spread of project financing across states and sectors.
From FY2015 to FY2025, Gujarat has led every year in project numbers. Maharashtra has grown in consistency, while Uttar Pradesh has slipped. This trend line makes Gujarat's leading bank-backed investments in India more than just a yearly headline. It is a decade-long pattern.
In parallel, the RBI also published data on private sector projects. It showed the total cost of private projects declined by about 6 per cent in FY25, from ₹3.91 lakh crore in FY24 to ₹3.67 lakh crore in FY25. This fall reflects a dip in private corporate optimism despite strong state-level numbers.
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FY24
The slip in private project costs adds another dimension. It suggests that while Gujarat and Maharashtra are leading in approvals, the overall appetite among corporates may have cooled in FY25.
Gujarat became the top state for bank-supported projects in FY2024, moving ahead of Uttar Pradesh. This shift marked the beginning of Gujarat’s strong lead in project financing. A 2024 report by The Economic Times confirmed this change.
A related article from LoansJagat explains how banks are becoming more careful with lending to protect their profit margins. This supports the idea that banks are focusing their support on states with stronger records, like Gujarat and Maharashtra.
The new RBI report released in September 2025 shows that Gujarat has stayed in the lead. Maharashtra remains in second place for the fourth year in a row. This shows a clear and steady trend in how banks choose which state projects to support.
Reactions in past years reveal the shifts. When private project financing slowed in FY2014-15, the government responded with higher public capital spending and incentives for infrastructure. Banks too were guided to lend more to core sectors.
Later, in FY2019 and FY2020, state investment reports showed Gujarat pulling ahead. At that time, central officials cited industrial corridors and ease of doing business as factors behind Gujarat’s edge. Maharashtra was often presented as the hub for services and urban projects, while Uttar Pradesh was seen as a rising state.
Now, in FY2025, the response is calmer. The RBI report is treated as confirmation of an existing pattern. Government policy has stayed with higher capital outlay in the Union Budget, and banks are keeping steady in project approvals. This shows that Gujarat and Maharashtra are no longer outliers but consistent leaders in bank-financed projects.
The RBI’s latest report tells a familiar story, Gujarat continues to lead, and Maharashtra follows closely. But this isn’t just about topping a chart. It reflects years of steady planning, investor confidence, and strong government support.
While a few other states like Uttar Pradesh and Andhra Pradesh are showing promise, the overall picture is still uneven. Most bank-backed projects are going to the same handful of states.
For the rest, the message is clear. To attract more bank funding, states need to focus on basics, smoother approvals, business-friendly policies, and solid infrastructure. Success doesn’t come overnight, but consistency makes all the difference.
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