Industrial Credit Growth Strengthens in November 2025

India’s banking sector showed positive momentum in November 2025 as lending to industries picked up pace. Data released by the central bank indicates improved credit flow to key sectors such as manufacturing, infrastructure, and services. This trend reflects stable demand conditions, better business confidence, and the banking system’s growing ability to support economic activity across multiple segments of the economy.

Why in the News?

The Reserve Bank of India released sectoral data showing that bank credit to industry rose by 9.6% in November 2025. This marks an acceleration compared to 8.3% growth recorded during the same period last year.

Overall Trend in Bank Credit

• According to RBI data, non-food bank credit grew by 11.4% year-on-year as of the fortnight ending November 28, 2025.
• This was higher than the 10.6% growth recorded a year earlier. The rise indicates stronger lending activity beyond agriculture and food procurement.
• Improved balance sheets of banks and steady credit demand from businesses have supported this upward trend in overall credit deployment.

Credit Flow to Industry and MSMEs

• Industrial credit recorded a year-on-year growth of 9.6%, showing improved momentum.
• Notably, credit to micro, small, and medium enterprises (MSMEs) continued to post double-digit growth, highlighting better access to formal finance for smaller businesses.
• Among major industries, sectors such as infrastructure, engineering, textiles, and petroleum-related industries witnessed robust credit expansion, reflecting ongoing investment and production activities.

Performance of Agriculture and Services Sector

• Credit to agriculture and allied activities grew by 8.7%, though it was lower than the 15.3% growth seen a year earlier.
• Meanwhile, the services sector recorded a growth of 11.7%.
• Lending to NBFCs and computer software companies improved, while trade and commercial real estate showed healthy growth with slight moderation.
• This points to broad-based but balanced credit expansion.

Static Background: Sectoral Deployment of Bank Credit

• Sectoral deployment of bank credit is a key indicator used by the RBI to assess economic activity.
• It shows how banks distribute loans across agriculture, industry, services, and personal loans.
• Sustained growth in industrial and MSME credit is crucial for job creation, infrastructure development, and economic recovery.
• RBI collects this data from major scheduled commercial banks covering about 95% of total non-food credit.

Key Summary At Glance

Question

Q. According to RBI data, bank credit to industry grew by how much in November 2025?

A. 8.3%
B. 9.6%
C. 10.6%
D. 11.7%