RBI Grade BNABARD ESISEBI
Overall Bank Credit Growth
- Total Credit Growth (FY25): Slowed to 11.1%, compared to 15.3% in FY24.
- Private Sector Banks: Witnessed the steepest slowdown, with March 2025 credit growth dipping to 9.5%, after maintaining over 15% growth for three consecutive years.
Retail Lending Trends
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- Retail Credit Share: Increased to 31% of total bank credit in FY25 (up from 24.1% in FY20).
- Retail Credit Growth: Eased to 13.2%, but still outpaced overall credit expansion.
- Key Segments: Consumer durable loans and other personal loans accounted for nearly one-third of retail credit.
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Borrower Profile Shifts
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NABARD Sprint 60: the 2025 cut-offs and your 60-day Phase I plan
8 of the top 10 in NABARD Grade A 2025, Rank 1 included, and Rank 1 back to back before that in 2021 and 2022: all prepared with C4S. The 2025 cycle was the toughest on record at every stage. This session reads those numbers properly and turns them into a 60-day, week-by-week plan for Phase I.
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- Individual Borrowers: Contributed 47.8% of total credit as of March 2025, up from 41.5% in March 2020.
- Women Borrowers: Share rose gradually to 23.8% in FY25, up from 22.0% five years ago—indicating improved credit access for female borrowers.
Deposit Composition and Interest Rate Trends
- Savings Deposits: Share declined to 29.1% in March 2025 (from 30.8% in 2024 and 33.0% in 2023).
- Cause: Banks lowered savings deposit rates to protect net interest margins.
- Fixed Deposits (FDs): Gained preference among savers.
- Term Deposits ≥7%: Accounted for 72.7% of all FDs in March 2025—signaling depositor shift toward higher returns.
Key Takeaways
- Private banks are witnessing a notable slowdown in credit growth, post a multi-year boom.
- Retail lending remains the main driver, despite some moderation in pace.
- A clear shift in depositor behavior is visible, with high-return FDs gaining against low-yielding savings accounts due to interest rate differentials.
