Overview

• Non-food bank credit rose 9.9% year on year as of July 25, down from 13.6% a year earlier.
• Export credit under priority lending slowed to 4.7% year on year by July 25, following a US move on Aug. 27 to add a 25% tariff that lifted duties to 50% on sectors including textiles, gems and jewellery, seafood and auto parts.
• Industry credit growth moderated to 6% in July, with June data showing 7.6% year-on-year growth and a slightly smaller share of total bank credit.
• Credit to NBFCs grew just 2.6% year on year in July, while lending to the services sector expanded 10.6% versus 14.5% a year earlier.
• Monetary transmission continued as the weighted average lending rate fell 39 basis points in April–June and the share of loans priced below 9% rose to 54.1% in June.