Bank credit growth makes a comeback with 9.5% increase in June after hitting 3-year low in May

Reserve Bank of India

Bank credit growth picked up 9.5 percent on-year to Rs 184.83 lakh crore as on June 27, 2025, according to the Reserve Bank of India (RBI) data. This, after the credit growth had hit a three-year low in May.

On a fortnightly basis, bank credit growth was up around 1 percent.

According to the RBI’s data, bank credit stood at Rs 184.83 lakh crore as on June 27, 2025, as compared to Rs 168.86 lakh crore as on June 28, 2024.

During the fortnight ended June 13, 2025, bank’s credit growth picked up and stood at 9.62 percent. Meanwhile, deposit growth in the system at 10.06 percent on-year has outpaced credit growth by over 50 basis points (bps).

Deposit growth stood at Rs 234.26 lakh crore as on June 27, 2025, as compared to Rs 212.85 lakh crore as on June 28, 2024, as per RBI’s data.

In the provisional numbers reported by banks for first quarter of the current financial year, advances growth remained in the range of 9-36 percent on a yearly basis.

Further, the investment of banks in the central and state government securities grew 8.7 percent on-year to Rs 66.97 lakh crore as on June 27, 2025.