Bank credit in India reached Rs 213.6 lakh crore by the end of March 31, showing a 16.1% annual growth rate, up from 11% in the previous year. The Credit-Deposit (CD) ratio stood at 81.4% for the fortnight ending March 31, 2026, slightly lower than the previous record high of 83%. Credit expansion of Rs 6 lakh crore, a 2.8% sequential increase, was observed, reflecting the usual year-end surge in disbursements.
Credit growth was fueled by robust retail lending, especially in gold and vehicle loans, strong MSME financing, increased bank exposure to non-banking financial companies, and strategic corporate borrowing. Aggregate bank deposits rose to Rs 262.3 lakh crore, marking a 13.5% year-on-year increase. Time deposits, comprising 85.9% of total deposits, grew by 10.8% year-on-year to Rs 225.4 lakh crore, slightly higher than the growth rate of the previous year.
Demand deposits surged by 32.4% year-on-year, a significant rise compared to the 6.8% growth in the prior year. The credit-to-total assets ratio stood at 73.9% as of March-end, a marginal decrease of 30 basis points from the previous fortnight. Forecasts suggest that bank credit is expected to grow around 13% this fiscal year, driven by strong growth in the micro, small, and medium enterprise and retail sectors, as well as a corporate preference for bank loans over bond issuance.
