North India Statesman
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Mumbai: As a result of the stringent norms of the Reserve Bank, retail debt growth in the banking sector slowed down to 11.60 percent on an annual basis in the financial year ending in the financial year 2024-25, while it was 27.60 percent in FY 2023-24, according to the data of the Reserve Bank. However, the highest number of loans in the retail area is being seen in the retail compared to other areas.
Agriculture, service and individual debt have seen a decline trend.
Due to the increase in risk load criteria by the Reserve Bank, banks had to slow down the pace of distributing unprotected loans. At the end of FY 2025, the retail loan was 59.50 trillion rupees. Debt increase in retail sector is being most seen in the retail sector compared to agriculture and allied activities, industries and other sectors.
Keeping in view the increase in lapse in retail loans, especially unsafe loans, the Reserve Bank has increased the risk load for loans in this sector from 100% to 125%. However, now it is installed.
In the last financial year, the total debt hike in the banking sector declined to 11 percent, which was seen 20.11 percent in FY 2024. The data of the Reserve Bank shows that the total loan increased by Rs 27.56 trillion to Rs 182.40 trillion at the end of FY 2025.
In the last financial year, the loan given to agriculture and allied sectors increased from 10.40 percent to Rs 22.90 per cent from year to year. Industrial loans increased by 7.80 percent to Rs 39.40 trillion, while the loan to the service sector increased by 12.40 percent to Rs 51.60 trillion.
This time the loans given for agriculture and related activities have increased by only 10.4%, while this increase was 20% at the same time last year. This time the loan given to the industrial sector has also increased by 8%, which is equal to the previous year. Debt growth in areas such as petroleum, coal, metal, machinery and construction was good in the industry, but debt growth in the infrastructure sector was slightly slow.
Bank loans have increased by 13.4% this year, compared to 20.8% in the same period last year. The Reserve Bank said that the main reason for this decline is the decline in debt to NBFC i.e. non-banking companies. However, debt growth in business services and business sectors is still good.
Retail segment includes dues on housing loans, personal loans, vehicle loans and credit cards.
