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Public sector banks’ credit growth outperforms private peers: Financial Services Secretary
Oct-15-2025

Financial Services Secretary M Nagaraju has said that the public sector banks have emerged stronger and more resilient, with credit growth outperforming their private peers in the recent past. He added that this reflects the growing robustness of the banking community, with significant improvements in due diligence, credit underwriting standards, and monitoring mechanisms for project loans. 

He pointed that customers are returning to public sector banks because of their renewed focus on efficiency, transparency, and trust. He also urged all banks to continue extending greater support to MSMEs and startups - the true drivers of India's economic growth. Further, he noted that banks must ensure that every customer is treated with dignity and respect, and that banks’ digital and service journeys remain seamless, resilient, and inclusive. 

Meanwhile, the Reserve Bank data had showed that the bank credit to industry grew at a slower pace of 6.5 per cent in August as against 9.7 per cent in the corresponding period last year. On a year-on-year (y-o-y) basis, non-food bank credit grew 9.9 per cent as on the fortnight ended August 22, 2025, compared to 13.6 per cent in the year-ago period. However, credit to micro and small, and medium industries continued to expand at a robust pace.

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