Bank credit growth slows to 15% in first half of April: RBI data

New Delhi: Bank credit growth slowed to 15 percent in the fortnight ended April 15, the Reserve Bank of India (RBI) said on Wednesday.

According to the latest data, the pace of lending growth slowed down to 14.88 per cent year-on-year (YoY) in the fortnight ended April 15, as compared to 15.96 percent recorded in the preceding fortnight.

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During the reporting period, overall credit contracted by 2.06 percent or Rs 4.51 lakh crore.

Bank credit stood at Rs 214 lakh crore in the fortnight ended April 15, as compared to Rs 218 lakh crore during the preceding 15-day period ended March 31.

The total credit stood at Rs 186 lakh crore in the fortnight ended April 18 last year, the RBI data showed.

During the fortnight ended March 31, bank credit grew at the fastest pace in the last two fiscal years, as banks rushed to meet their balance sheet targets ahead of the financial year-end, resulting in a sharp increase in both loans and deposits.

Bank credit growth has remained in double digits for more than seven consecutive months, reflecting sustained momentum in lending activity. The acceleration in credit expansion gathered pace following the government's move to rationalise the Goods and Services Tax (GST) structure in September last year.

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The continued double-digit growth indicates a revival in credit demand from both retail borrowers and corporates in recent months, underscoring improving economic activity and stronger financing needs across sectors.

Meanwhile, deposits of banks grew 12.12 percent year-on-year in the fortnight ended April 15. In absolute terms, deposits stood at Rs 261.88 lakh crore during the 15-day period ended April 15 this year, compared to Rs 233.56 lakh crore in the fortnight ended April 18, 2025.

Investments by banks in state and central government securities jumped to Rs 70.64 lakh crore in the reporting period, as compared to Rs 68.49 lakh crore recorded a year ago.

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