Bank credit grows over 17% in May

Bank credit grew 17.44% year-on-year in May, marking the ninth consecutive month of double-digit expansion, reflecting sustained demand for loans from both retail and corporate borrowers, according to the latest RBI data. On May 15, credit growth was seen at 16.06%, indicating a sharp pickup by month-end. Since January 31 this year, credit growth has stayed above 13% and ranged between 14% and 17% thereafter. 

The uptrend became more pronounced from September 2025 onward, when growth accelerated to 10.21% and 10.29% in successive fortnights, and remained firmly in double-digit territory thereafter. On September 3 last year, the GST Council approved a simplified two-tier tax structure of 5% and 18%, a move seen as improving compliance clarity and business sentiment. October and November consolidated the recovery, with lending growth moving past 11% and hovering in the 11% to 11.4% range, supported by festive demand, retail loan expansion and higher trade financing.    -PTI