Bank credit growth reaches eight-quarter high amid funding gap
pre-market1 source ↓written by the desknot a recommendation
- in Q1 FY27
- 16.5%
- deposits lagged
- 11.3%
- resulted
- 512-basis-point gap
- to a record
- 83.3%
Bank credit growth accelerated to 16.5% in Q1 FY27, marking an eight-quarter high, while deposits lagged at 11.3%. This resulted in a 512-basis-point gap, pushing the loan-to-deposit ratio to a record 83.3%. The widening gap indicates increasing funding pressure on banks, highlighting potential challenges ahead.
Not investment advice. For informational purposes only.