Current Affairs - Economy - Discussion

The bank credit growth for October 2025 stood at 11.3%, reflecting a slowdown in lending activity across the financial sector. This moderation is linked to factors such as reduced loan demand, cautious lending behaviour by banks, and broader global economic uncertainties. Slower credit growth can impact industries, MSMEs, NBFCs and retail borrowers by delaying investment cycles and affecting expansion plans. Meanwhile, deposit growth accelerated, creating a liquidity surplus that may pressure banks to rethink their strategies for deploying funds efficiently. The 11.3% figure is significant because it highlights a pivotal shift in India’s credit-deposit dynamics and signals potential policy considerations ahead.