New Delhi, May 12 -- India's largest bank State Bank of India (SBI) reported slower-than-expected loan growth for FY25. SBI's advances grew 12% from last year, missing its guidance of 14%. Adding to the woes, SBI's management has flagged that elevated tariffs could temper loan growth.

Kotak Mahindra Bank, another large private sector bank, meanwhile, recorded a 14% growth in advances for FY25, compared to the 18% growth seen in FY24, reflecting a cautious approach. Kotak did not provide any forward guidance for FY25.

The slowdown in credit growth isn't surprising, but it's becoming more visible. Banks are lending, just a bit more carefully. With FY25 behind us, the tone for FY26 looks measured, not aggressive.

So, what's behind the cre...