Credit Growth

Deposit growth hits 15-year high as FCNR(B) mobilisation; incremental credit-deposit ratio softens to 62.6%

SBI's Kolkata Circle sees 18% credit growth as MSMEs, housing, agriculture and infrastructure drive lending demand

The credit-deposit growth gap widened to 5 per cent in July, prompting banks to rely more on certificates of deposit, money markets and domestic and overseas bonds

Credit growth is shifting from traditional strongholds such as Tamil Nadu and Maharashtra towards Uttar Pradesh, Bihar and Madhya Pradesh, but penetration still trails developed markets

Industrial lending gathered pace across micro, small, medium and large enterprises as non-food bank credit, services, agriculture and retail loans also recorded stronger growth

Liquidity surplus narrowed to ₹2,884 crore as credit growth outpaced deposits, though FCNR(B) inflows are expected to improve system liquidity in the coming weeks

SBI Economic Research says prolonged geopolitical tensions and supply shocks could keep credit growth ahead of deposits, though FCNR(B) inflows may improve deposit mobilisation

Bank of Maharashtra (BoM) on Monday said it has recorded a 27 per cent year-on-year increase in its total credit to Rs 3.06 lakh crore in the June quarter. The Pune-based public sector lender's outstanding credit stood at Rs 2.41 lakh crore at the end of the April-June quarter of FY26, BoM said in a regulatory filing. The total credit included loans to the retail, agriculture and MSME (RAM) segments, which grew 25 per cent year-on-year to Rs 1.87 lakh crore, it said. During the quarter, the bank's exposure to corporate credit also crossed Rs 1 lakh crore to Rs 1.11 lakh crore, registering an increase of 21 per cent. The lender reported a 13 per cent rise in total deposits to Rs 3.44 lakh crore in the reporting quarter against Rs 3.05 lakh crore at the end of the first quarter of the previous financial year. As a result, the total business (total credit and deposits) of the bank registered an increase of 19 per cent to Rs 6.51 lakh crore compared with Rs 5.46 lakh crore at the end

Healthy credit growth and treasury gains are expected to lift banks' Q1FY27 profits, while asset quality remains stable despite concerns over the West Asia conflict

Crisil says banks continue to prioritise CASA mobilisation as credit growth outpaces deposits and competition for retail funds keeps funding costs under pressure

Non-food bank credit rose 17.4 per cent year-on-year in May, outpacing growth in non-bank funding and lifting total credit to the commercial sector

Credit growth expanded at 16.2 per cent in the year through May 15, the fastest clip since June 2024, according to the Reserve Bank of India data

Large-ticket deposits are gaining prominence as banks struggle to mobilise retail savings, increasing reliance on a small pool of high-value depositors

More Indian women are seeking business and retail loans, but nearly two-thirds still remain outside the formal credit system

Retail loans rose 16.6 per cent to Rs 170.2 trillion in FY26, with gold loans emerging as the fastest-growing segment amid rising bullion prices and regulatory easing

PNB sees credit growth touching 14% in FY27 despite West Asia risks, with ECLGS 5.0 expected to support MSMEs and sustain lending momentum

Indian Bank's CEO flags continued deposit pressure and cautious margin outlook even as credit growth and asset quality remain stable

Economy wrap April 27-May 3: India's economy showed mixed signals this week as GST collections hit a record, credit growth slowed and policy moves spanned FDI, trade, energy and statistical reforms

Icra expects bank credit growth to ease below 12 per cent in FY27 as West Asia conflict, higher oil prices and deposit competition weigh on lending, margins and asset quality

Industrial credit growth seen at 9-13% in H1 2026, led by capex revival and infrastructure demand, with banks signalling steady, not sharp, expansion