Bank Credit Sees 16% Growth Amid Healthy Demand, RBI Reports
Bank credit grows 16% in fortnight ended April 30, shows RBI data
Business Standard
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Bank credit in India increased by 16% year-on-year in the fortnight ending April 30, 2026, surpassing the previous fortnight's 15% growth. Deposits also rose by 12.3%, indicating strong demand, particularly from micro, small, and medium enterprises (MSMEs) and corporates, according to Reserve Bank of India (RBI) data.
- 01Bank credit grew by 16% year-on-year as of April 30, 2026.
- 02Deposits increased by 12.3% in the same period.
- 03Total banking credit reached ₹212.12 trillion.
- 04Total deposits amounted to ₹258.64 trillion.
- 05Analysts anticipate a moderation in credit growth for FY27 due to geopolitical uncertainties.
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According to data from the Reserve Bank of India (RBI), bank credit in India grew by 16% year-on-year in the fortnight ending April 30, 2026, an increase from 15% in the previous fortnight. In absolute terms, credit rose by ₹2.94 trillion, bringing the total to ₹212.12 trillion. Meanwhile, deposits grew by 12.3%, amounting to ₹258.64 trillion. The demand for credit is primarily driven by micro, small, and medium enterprises (MSMEs) and corporate sectors. Despite the robust growth in FY26, analysts predict a slowdown in credit growth for FY27 due to geopolitical uncertainties and a fluctuating interest-rate environment.
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The growth in bank credit suggests increased lending capacity for businesses, which could lead to more investments and job creation in various sectors.
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