After moderating in 2024-25, banks’ credit growth is expected to slow further in 2025-26 as they take a cautious stance on unsecured loans. According to Reserve Bank of India (RBI) data, the credit growth eased to 11.13% in FY25, with outstanding bank credit reaching Rs 181.29 lakh crore as of March 7. This marks a significant slowdown from the 20.18% expansion in FY24. “The RBI has expressed concerns over high credit-deposit (CD) ratio of banks. Some private banks have high CD ratio and they would like to bring it down by moderating their credit growth,” said a senior official of a private bank. “Delinquency in unsecured loans is relatively high and banks will be cautious in this category.”