Bank Credit Growth Slows to 15% as Deposits Decline, Reveals RBI Data
Bank credit grows by 15% in April 15 fortnight, shows RBI data
Business Standard
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Bank credit in India grew by 15% year-on-year for the fortnight ending April 15, 2026, down from 16.1% in the previous fortnight. Deposits also saw a decline, growing by 12.2% compared to 13.5% earlier, as geopolitical uncertainties and interest rate fluctuations loom over the financial landscape.
- 01Bank credit growth decreased to 15% YoY from 16.1% in the previous fortnight.
- 02Deposit growth fell to 12.2% YoY, down from 13.5%.
- 03Total banking credit reached ₹209.21 trillion.
- 04Total deposits stood at ₹256.48 trillion.
- 05Analysts predict a moderation in credit growth for FY27.
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According to the Reserve Bank of India (RBI), bank credit growth was 15% year-on-year for the fortnight ending April 15, 2026, a decline from 16.1% in the previous fortnight. Meanwhile, deposit growth also slowed to 12.2% from 13.5%. In absolute terms, total banking credit in the system reached ₹209.21 trillion, while total deposits amounted to ₹256.48 trillion. The contraction in credit by 2.1% (approximately ₹4.39 trillion) and deposits by 2.2% (around ₹5.81 trillion) is attributed to the end-of-financial-year rush to meet balance sheet targets. Analysts anticipate a slowdown in credit growth for the upcoming fiscal year (FY27) due to geopolitical uncertainties and a fluctuating interest rate environment.
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The slowdown in credit and deposit growth may affect loan availability and interest rates for consumers and businesses.
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