Bank Credit Surges 16% in FY26, Outpacing Deposit Growth
Bank credit grows 16% in FY26, faster than deposits rise
The Economic Times
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In the fiscal year ending March 31, 2026, bank credit in India increased by 16%, surpassing the 13.4% rise in deposits. Total deposits reached ₹267.8 lakh crore while bank credit amounted to ₹219 lakh crore. This trend reflects increased lending and spending as the financial year concluded.
- 01Bank credit rose by 16% year-on-year.
- 02Deposits increased by 13.4% during the same period.
- 03Total deposits reached ₹267.8 lakh crore.
- 04Bank credit stood at ₹219 lakh crore.
- 05Investments grew by 4.7% to ₹71.4 lakh crore.
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As of the fiscal year ending March 31, 2026, bank credit in India experienced a significant 16% increase, outpacing the 13.4% growth in deposits, according to data from the Reserve Bank of India (RBI). Total deposits reached ₹267.8 lakh crore while bank credit amounted to ₹219 lakh crore. This growth is typical as companies often park surplus cash, governments increase spending, and banks ramp up lending towards the end of the financial year. Additionally, investments saw a modest rise of 4.7%, totaling ₹71.4 lakh crore. As of April 4, 2025, bank credit was recorded at ₹188.7 lakh crore with aggregate deposits at ₹236.2 lakh crore. In the last fortnight, banks mobilized approximately ₹12 lakh crore in deposits and disbursed ₹6.1 lakh crore in loans, indicating a robust lending environment.
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The increase in bank credit could lead to more accessible loans for consumers and businesses, potentially stimulating economic growth.
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