Bank Credit Growth

Credit offtake strengthened on broad-based demand led by personal loans, MSME borrowing and services sector growth, while gold loans surged 127.6% amid reporting norm changes

Bank credit growth slowed to 13.1% and deposit growth to 10.6% in early January, RBI data shows, though FY26 credit outlook remains positive

There is greater confidence among banks to lend to MSMEs because of data availability, and clarity in terms of their business models, says Setty

Banks report strong loan growth in Q3 FY26 as GST rate cuts lift demand, with credit outpacing deposits for most lenders even as funding pressures persist

Analysts expect banks' corporate credit to pick up as the bond-loan rate gap narrows and RBI reforms, including acquisition financing and eased exposure norms, begin to bite

Outstanding CD issuance tops record ₹5.7 trn during the period

Another rate cut will make mobilising resources tough

ICRA expects bank credit growth at 10.7-11.5% in FY26, aided by higher retail and MSME demand following GST rationalisation. Corporate lending remains muted, with ECL impact pegged below 1.5%

RBI data show bank loans fell by Rs 49,468 crore in mid-October, even as annual growth improved marginally to 11.5 per cent; deposits also declined during the period

Attribute this to fiscal, monetary measures

The state-owned Bank of Maharashtra (BoM) has reported a 16.8 per cent credit growth of Rs 2.54 lakh crore in the second quarter of this financial year. Total advances stood at Rs 2.17 lakh crore as of September 30, 2024, BoM said in a regulatory filing on Monday. The Pune-based lender reported a 12.1 per cent increase in total deposits to Rs 3.09 lakh crore, as against Rs 2.76 lakh crore at the end of the second quarter of the previous financial year. The bank's total business rose by 14.2 per cent to Rs 5.64 lakh crore, from over Rs 4.94 lakh crore in the year-ago period. The Current Account and Savings Account (CASA) of the bank stood at 50.35 per cent of total deposits, compared to 49.29 per cent at the end of the second quarter of the previous fiscal year. Credit deposit ratio of the bank rose from 71.7 per cent to 82 per cent at the end of September 2025, it added.

Shares of State Bank of India (SBI) rallied 2.5 per cent to ₹874 in intra-day trade is inching towards its all-time high level of ₹912.10, touched on June 6, 2024

Crisil Ratings expects bank credit growth to accelerate in H2 FY26 to 11-12%, driven by retail loans and NBFCs, with corporate credit growth rebounding to 9.7%

Bank credit growth slowed further to 9.5% YoY in the fortnight ending June 27, with deposits growing at 10.1%, outpacing credit growth, data showed.

Loan growth for banks is yet to pick up despite a 100 bps cut in the policy repo rate by the Reserve Bank of India (RBI) since February

Banks maintain credit growth guidance at 11-13 per cent and await CRR reduction and festival season before revising projections

Private sector Karur Vysya Bank expects its credit growth to be more than 2 per cent over the industry's overall growth during the current financial year, a top official said. The Tamil Nadu-based bank has lined up plans to open 28 new branches before the first half of the current financial year, particularly in Southern and Western parts of the country, the Bank's Managing Director and CEO, Ramesh Babu, said. The financial landscape is witnessing a dramatic transformation globally as well as in India, driven by technological innovations, changing consumer preferences and the emergence of alternative business models, he said. "The Reserve Bank of India is expected to adopt a more accommodative monetary policy stance. This could involve further rate cuts to stimulate domestic demand and support economic growth. The sudden escalation at the border has also added more uncertainties for the coming year," Babu told analysts recently, during the Q4 FY2025 Earnings Conference ...

Bankers said credit growth is expected to be sluggish in FY26 owing to weaker demand across unsecured loans, mortgages

Loan growth for commercial banks dipped to 10.3 per cent in the fortnight ended April 18, while deposit growth inched up slightly to 10.2 per cent, RBI data shows

Tax sops, softer interest rates to support loan offtake