Indian banks' credit rose 19.4% year‑on‑year in the first half of FY27, with deposits up 17.8% as of September 30, 2026, pushing the credit‑to‑deposit ratio to 81%.
The total credit stood at ₹229.9 lakh crore and aggregate deposits reached ₹284 lakh crore, a leap driven largely by the $133 billion mobilised under the FCNR(B) scheme.
Time deposits accounted for 84.5% of the 17.8% deposit growth, contributing ₹36.3 lakh crore, while demand deposits surged 21.6% to ₹37.4 lakh crore, outpacing last year's 8.8% demand rise.
In contrast, credit growth in the same period a year earlier was 11.4% against 9.9% in deposits, reflecting a widening gap that has already lifted the credit‑to‑deposit ratio from 78.9% at the end of 2024 to 80.8% in March 2025.
With the ratio now at 81%, banks face tighter resource constraints as they balance loan demand with liquidity buffers. The RBI has indicated it will convene a supervisory meeting in early 2027 to assess capital adequacy and reserve requirements in light of the rapid credit expansion.