Mumbai, March 2 -- The Reserve Bank of India (RBI) stated in a latest update that Scheduled Commercial Banks' credit growth (y-o-y) improved marginally to 12.2 per cent in December 2025 from 11.8 per cent in December 2024. Bank branches located in rural, semi-urban and urban centres recorded higher credit growth than metropolitan branches, with their combined share in total credit increased to 40.4 per cent in December 2025 from 36.9 per cent in December 2020. Since December 2024, credit growth in metropolitan branches has remained lower than branches in other population groups.

RBI stated that Public sector banks (PSBs) recorded credit growth of 14.1 per cent (y-o-y) for December 2025, exceeding the overall bank credit growth. Credit gr...