Total increased to Rs 256 lakh crore as of May 15 while bank credit stood at Rs 211 lakh crore. Bank investments grew 4.2% year on year, at a slower clip than the 7.8% growth recorded in the same period last year. A majority of bank investments are in .
The latest available sectoral credit data however showed a decelerating lending to industrial units in April amid geopolitical uncertainties while jewellery continued to surge albeit at a lower pace.
Banks’ outstanding loans to large industries contracted 1.1% month-on-month to Rs 30.5 lakh crore at the end of April, while loans to micro and small units shrank 1% to Rs 10.5 lakh crore over the same period, reflecting a cautious business activity following the Iran war.
Bank loans to medium industrial units also contracted 0.3% to Rs 4.4 lakh crore, according to the sectoral loan deployment data.
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Senior bankers are expecting the credit growth to moderate this fiscal from 16.1% seen in FY26.
In the personal loan category, lending against gold jewellery continued to record the sharpest expansion even as the pace of month-on-month growth moderated to 5.9% as against 7.1% growth recorded in the year ago period. The outstanding bank stood at Rs 4.9 lakh crore.
Agri loans backed by gold collateral is not included in this as these are being classified as agri loans, people aware said. However, RBI said that one particular bank classifies such gold-backed agri loans as gold loans without naming the lender.
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