Bank credit growth reaches 8-quarter high amid funding gap
after close1 source ↓written by the desknot a recommendation
- in Q1 FY27
- 16.5%
- outstanding credit
- ₹213.6 lakh crore
- deposits lagged
- 11.3%
- and pushing
- 512 basis points
- to a record
- 83.3%
Bank credit growth surged to 16.5% in Q1 FY27, the highest in eight quarters, with outstanding credit at ₹213.6 lakh crore. However, deposits lagged at 11.3%, widening the credit-deposit gap to 512 basis points and pushing the loan-to-deposit ratio to a record 83.3%. This indicates increasing funding pressure on banks, highlighting potential risks in liquidity management.
Not investment advice. For informational purposes only.