India banks face funding pressure as deposits lag credit growth
Recent data reveals India's banks are experiencing funding pressure as credit growth of 13.8% surpasses deposit growth of 10.8%. The credit-deposit ratio has reached a record high of 83%, raising concerns about liquidity and profitability.
after close1 source ↓written by the desknot a recommendation
- deposits fell
- 0.7% fortnightly
- credit-deposit ratio
- 83%
Recent data shows credit growth at 13.8% outpacing deposit growth of 10.8% for the year ending 15 Mar 2026. Notably, deposits fell 0.7% fortnightly, pushing the credit-deposit ratio to 83%, a record high. This trend raises concerns about liquidity and profitability in the banking sector. 📉
• Deposits down 0.7% due to advance tax outflows
• Credit growth marginally up 0.1%
• Structural issues may impact banks' funding strategies.
Not investment advice. For informational purposes only.