Bank Loans to Private Sector Jump By 12% in FY25
Loans given to the private sector increased by 12 percent compared to last year (YoY), hitting Rs. 9.6 trillion in FY25, which is marginally higher than the 10-year average growth rate of 11 percent.
Based on data from the central bank, there’s still room for growth, since it’s currently at only 8.4 percent of GDP for FY25, which is significantly lower than the 15.2 percent of GDP noted in FY18.
Auto financing experienced a significant recovery
Auto financing, which falls under loans to the private sector, experienced a significant recovery, increasing by 20 percent year-over-year in FY25. Thanks to the steep drop in interest rates and a boost in economic activity, a report from Topline Securities predicts that loan growth will keep up with double-digit figures in FY26.
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