Indian bank credit jumps 14.4% in December as gold loans double

Power segment and ports drive infrastructure credit growth.

Indian banks’ credit rose faster in December 2025 thanks to the rise of non-food bank loans and gold loans.

Non-food bank credit growth rose 14.4% year-on-year (YoY), ramping up from the 11.4% YoY growth in November, according to a report from CareEdge Ratings based on central bank data.

“Credit growth improved across broad-based, led by personal loans, particularly vehicle loans, alongside healthy credit growth in the services and industrial sectors, with MSME lending remaining a key driver,” the ratings agency said in a research report published 5 February 2026.

Loans to micro and small enterprises rose 31% YoY in December 2025, accelerating from the 9.8% YoY growth in December 2024.

Gold loans more than doubled, expanding 126.6% YoY during the month.

Industrial credit growth rose 13.3% YoY, accelerating from the 7.5% YoY growth in December 2024.

Robust credit growth was reported in a wide range of sectors including mining and quarrying, infrastructure, construction, amongst others.

Infrastructure credit, which makes up one-third of overall industrial lending, rose by 7.5% YoY during the month, driven by the power segment and ports.

Loans to the services sector rose by 15.3% YoY, driven by increased lending to trade, tourism, hotels, restaurants, shipping, aviation, and non-bank financial companies (NBFCs), CareEdge Ratings said.

Credit growth moderated in segments like paper and paper products, rubber and plastics, nuclear fuels, and basic metals.