Widening gap between credit and deposit growth raises concerns
pre-market1 source ↓written by the desknot a recommendation
- has widened
- 123 bps
- 28 Nov 2025
- and deposits
- 11.42%
- year-on-year
- 10.19%
- cut
- 125 bps
The gap between bank credit and deposit growth has widened to 123 bps as of 28 Nov 2025, with credit growing 11.42% and deposits at 10.19% year-on-year. This divergence follows a 125 bps cut in the repo rate by the RBI, prompting depositors to seek higher returns in mutual funds and equities. Banks may resist further deposit rate cuts to retain their deposit base.
Not investment advice. For informational purposes only.