Bank credit growth to farm sector slows to 10.4% in March: RBI data

Non-food bank credit as on the fortnight ended March 21, 2025, grew by 12.0 per cent as compared to 16.3 per cent during the corresponding fortnight of the previous year, as per RBI data on sectoral deployment of bank credit for the month of March 2025. Bank credit to agriculture and allied activities registered a growth of 10.4 per cent (y-o-y) as on the fortnight ended March 21, 2025 as against 20 per cent in the corresponding fortnight of the previous year, while advances to the industry remained flat at 8 per cent. Credit to services sector increased by 13.4 per cent (y-o-y) as on the fortnight ended March 21, 2025, primarily due to decelerated growth in credit to 'non-banking financial companies' (NBFCs). Meanwhile, credit to personal loans segment registered a growth of 14.0 per cent (y-o-y) as on the fortnight ended March 21, 2025, as compared with 17.6 per cent a year ago, largely due to decline in growth in 'other personal loans', 'vehicle loans' and 'credit card outstanding'. The Reserve Bank of India (RBI) has released the data on sectoral deployment of bank credit collected from 41 select commercial banks, accounting for about 95 per cent of the total non-food credit deployed by all banks taken together.

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