Bank Credit to Industries Slows to 7.6% in June: RBI Data

The Reserve Bank of India (RBI) has released its latest data showing that credit growth to industries moderated to 7.6% in June 2025, compared to double-digit growth seen in the previous year. This slowdown highlights the cautious borrowing sentiment among industrial players amid global uncertainties, high input costs, and uneven demand recovery across sectors. According to the data, large industries witnessed a sharper slowdown, while medium and small industries showed relatively resilient borrowing trends, supported by government schemes and credit guarantees. Sectors such as textiles, chemicals, and infrastructure faced slower credit disbursements, whereas segments like renewable energy and IT-related services continued to see steady financing. Analysts suggest that this moderation may be temporary, as the festive season in the second half of the year could revive demand and encourage fresh borrowing. However, the RBI is likely to keep a close watch on lending patterns to ensure that the credit slowdown does not adversely affect the overall growth trajectory. The central bank’s cautious stance on interest rates and its focus on inflation management are also seen as influencing lending dynamics. Economists note that maintaining a balance between industrial credit flow and financial stability will be crucial in the coming months.