Credit Growth Cools: RBI Data Shows Slowdown
The Reserve Bank of India (RBI) has reported a moderation in credit growth, with non-food credit expanding by 10.2 per cent year-on-year as of June 27, 2025. This represents a significant dip from the 13.8 per cent growth observed during the same period in 2024.
The latest figures, released by the central bank, indicate a cooling trend in credit disbursement across various sectors. This slowdown warrants close monitoring of the overall economic health.
Experts suggest that several factors, including rising interest rates and a cautious approach by businesses, could be contributing to the decline. The RBI’s upcoming monetary policy review will likely address these concerns.
This softening in credit growth raises questions about the strength of the ongoing economic recovery. Further analysis is crucial to understand the implications for investment and overall economic activity in the coming months. The impact on job creation and consumer spending will be closely watched.
