Bank lending to industry in India accelerated in November 2025, according to Reserve Bank of India data, offering a positive signal for investment activity and economic momentum. Non-food bank credit expanded 11.4% year‑on‑year for the fortnight ended 28 November, while credit to industry rose 9.6% compared with 8.3% a year earlier.
Bank credit to industry shows broad-based gains
The central bank’s Sectoral Deployment of Bank Credit report shows that lending to micro, small and medium industries continued to record double-digit growth, underlining improving credit access for smaller enterprises. Among major sectors, outstanding advances to infrastructure, all engineering, textiles and petroleum, coal products and nuclear fuels registered robust year‑on‑year increases.
Services sector lending also strengthened, rising 11.7% year‑on‑year, while personal loans recorded a 12.8% increase. The data reflect steady demand across several segments: non‑banking financial companies and computer software saw improved credit flows, and trade and commercial real estate maintained healthy, if slightly decelerating, growth.
Agricultural credit expanded by 8.7% on an annual basis, down from 15.3% in the comparable fortnight of the previous year, indicating a moderation in farm lending but still positive expansion. The housing and credit card segments showed signs of moderation relative to last year’s pace, while vehicle loans and loans against gold jewellery maintained steady growth.
RBI collected the sectoral deployment data from 41 scheduled commercial banks that together account for roughly 95% of the total non‑food credit extended by the banking system. That coverage gives the figures strong representativeness for overall banking sector behaviour.
The shift towards higher credit growth to industry and services can support investment and consumption in the near term. Infrastructure and engineering lending in particular may translate into fresh capital expenditure projects and job creation, while sustained personal loan growth points to continued consumer demand. However, the moderation in housing and credit card growth suggests household leverage patterns are evolving and merit monitoring.
Analysts will watch whether the uptick in bank credit translates into higher real sector activity and stronger GDP outturns. Credit growth that is broad‑based across small and medium enterprises as well as larger industrial sectors tends to be more supportive of durable expansion than growth concentrated in a few pockets.
Overall, the November data indicate that credit supply and demand dynamics in India remain constructive. Continued monitoring of sectoral flows, interest rate conditions and asset quality trends will be important to assess whether the improved lending momentum sustains and supports broader economic recovery.
Key Takeaways:
- Non-food bank credit grew 11.4% year-on-year as of the fortnight ended 28 November 2025, with industry credit up 9.6%.
- Micro, small and medium industries recorded double-digit credit expansion while infrastructure, engineering, textiles and petroleum sectors led growth.
- Services and personal loans continued to expand, though housing and credit card outstanding moderated.
- Data come from 41 major scheduled commercial banks covering about 95% of non-food credit.
