New Delhi, July 20 -- Softening growth in the formal sector is beginning to weigh on overall credit growth, according to a report by HSBC Global Research.

The report noted that, after a few years of strong growth, the formal sector is expected to slow in 2025.

"This is led by factors such as gains from strong equity markets and rising wage growth now plateauing after a strong run," the report added.

India's bank credit growth, which was 16 per cent a year ago, has now declined to 9 per cent as of June 2025.

A deceleration in credit growth reflects a sharp fall reflects reduced borrowing and weaker demand in the economy.

The report titled 'India: Credit, deposit and market memory' stated that just like the earlier issue with deposits ...