Credit growth surpasses deposits as repo rates decline
after close1 source ↓written by the desknot a recommendation
- has widened
- 123 bps
- 28 Nov 2025
- growth stands
- 11.42%
- deposits grew
- 10.19%
- cut
- 125 bps
The gap between bank credit and deposit growth has widened to 123 bps as of 28 Nov 2025. Year-on-year credit growth stands at 11.42%, while deposits grew by 10.19%. This trend follows a 125 bps cut in the repo rate, prompting depositors to seek higher returns in mutual funds and equities. 📉
This shift may pressure banks to maintain deposit rates to avoid losing their deposit base, impacting liquidity in the banking sector.
Not investment advice. For informational purposes only.