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Bank Credit Surges 19%, Deposits Up 18%: Jefferies Report
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News18•22-09-2026, 15:15
Bank Credit Surges 19%, Deposits Up 18%: Jefferies Report
- •Bank credit growth accelerated to 19% year-on-year by August 31, with deposit growth rising to 18%, according to Jefferies' India Financial Daily report.
- •Loan and investment growth combined stood at 16%, while the credit-to-deposit ratio was 80% and investment-to-deposit ratio was 26%.
- •Credit growth has surged recently, with private banks maintaining their share, though a moderation in pace is anticipated.
- •The gap between loan and deposit growth is narrowing as deposit mobilization strengthens, easing pressure from rapid credit expansion.
- •Improving liquidity conditions are noted, with banking system surplus liquidity at approximately Rs 5 trillion as of September 21.
Key Questions Answered
According to Jefferies' India Financial Daily report, bank credit growth accelerated to 19 per cent year-on-year as of August 31, while deposit growth picked up to 18 per cent.
The credit-to-deposit ratio stood at approximately 80 per cent, while the investment-to-deposit ratio was recorded at around 26 per cent.
Banking system surplus liquidity stood at around Rs 5 trillion as of September 21, based on data provided in the Jefferies report.
