Bank credit in India has continued to demonstrate steady resilience, with total lending expanding by 11.5% year-on-year as of late November 2025, according to data released by the Reserve Bank of India (RBI). The latest figures show that total outstanding bank credit reached approximately ₹195.3 lakh crore, underscoring sustained demand for loans across multiple sectors of the economy.

Key Highlights

• Bank credit in India grew 11.5 percent year-on-year, reflecting resilient lending demand across sectors.
• Strong retail and MSME borrowing supported credit growth despite slower deposit mobilisation trends.

The Ministry of Finance highlighted that credit growth has remained above the 10% mark for several consecutive months, reflecting stable borrowing activity and confidence among businesses and consumers. Robust demand in both the retail and MSME segments has been a key driver of the credit expansion, supported by improving consumption trends and positive rural economic activity.

Analysts note that the durable credit momentum signals broader strengthening in economic activity, even as global uncertainties persist. The consistent rise in lending also points to steady investment and production needs, which have been complemented by recent policy measures aimed at supporting credit flow and economic growth.

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However, some caution that deposit growth has been more modest, which could pose challenges for liquidity if banks are required to increasingly rely on alternative funding sources. Despite this, the current credit trajectory suggests that Indian banks are continuing to extend loans in sectors where credit demand remains strong, including consumption, small business financing, and housing finance.

Overall, the persistence of healthy credit growth is being viewed as a positive indicator for the Indian economy, signalling sustained lending activity and reflecting confidence in loan demand across key segments.