Bank of credit growth slow down, but the total flow of financial resources to the commercial sector rise: RBI

Sanjay Malhotra, Governor of the Reserve Bank of India (RBI), during a press conference in Mumbai, India, on Wednesday, August 6, 2025. Malhotra said that the country contributes more to global growth than the US, who responds to President Donald Trump’s recent remark, who’s recent remark, “Dode Trump’s recent remark,” the recent remark of the recent remark, “Dead Trump’s” Die “Dead The Recent Remark,” Dead The Recent Remark, “Dode’s”. Photographer: Dhiraj Singh/Bloomberg | Photocredit: Dhiraj Singh

The trend of the growth of the bank credit slows down, even if the total stream of financial resources, including non-banking sources, continues to rise to the commercial sector this year, according to RBI governor Sanjay Malhotra.

“As a transmission [of repo rate cuts] For the money markets, faster, large companies were increasingly dependent on market -based instruments such as commercial paper and corporate bonds to sources funds, reducing their dependence on bank credit, ”said Malhotra in his bi -monthly monetary policy overview.

Because the profitability of large companies has increased, their internal resources have also become an important source for company expansion.

The total flow of financial resources to the commercial sector increased from £ 33.9 Lakh Crore in FY24 to £ 34.8 Lakh Crore in FY25. The governor said that this trend will also take place during the current financial year.

Malhotra emphasized that although bank credit grew by 12.1 percent during FY25, slower than the growth rate of 16.3 percent in FY24, it is higher than the average growth rate of 10.3 percent registered in the period of ten years prior to FY25.

In addition, while the flow of non-food bank credit during R FY25 by approximately £ 3.4 Lakh Crore was reduced from £ 21.4 Lakh Crore to almost £ 18 Lakh Crore, the current of non-bank sources is more than well made for this decrease.

Thus, although the growth of the bank credit delayed last year, the total flow of financial resources to the commercial sector increased from £ 33.9 Lakh Crore in FY24 to £ 34.8 Lakh Crore in FY25. This trend will also take place during the current financial year.

Published on August 6, 2025