India banks face funding pressure as deposits lag credit growth
pre-market1 source ↓written by the desknot a recommendation
- outpacing
- 13.8%
- for the year
- 10.8%
- fortnightly due
- 0.7%
- to a record
- 83%
- marginally increased
- 0.1%
Recent data reveals a credit growth of 13.8% outpacing deposit growth at 10.8% for the year ending 15 Mar 2026. Notably, deposits fell 0.7% fortnightly due to advance tax outflows, pushing the credit-deposit ratio to a record 83%. This trend raises concerns over liquidity and funding for banks.
• Credit growth marginally increased by 0.1%
• Rising CD ratio indicates potential strain on bank liquidity
• Ongoing gap may impact profitability and lending capabilities.
Not investment advice. For informational purposes only.