Indian banks’ credit grows 16.1 pc, CD ratio stays high: Report

NEW DELHI — Bank credit in India stood at INR 213.6 lakh crore for the fortnight ending March 31, registering an annual growth of 16.1 per cent for the reported period -- up from 11 per cent in the same period prior year, a report said on Tuesday.

The report from CareEdge ratings said credit growth in Indian banks continued to outpace deposit accretion, widening the differential to about 260 basis points.

Credit–Deposit (CD) ratio remained elevated at 81.4 per cent for the fortnight ended March 31, 2026, though it moderated sequentially from its record high of 83 per cent.

The report added that credit expanded by INR 6 lakh crore, or 2.8 per cent, sequentially, reflecting typical year‑end acceleration in disbursements.

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Credit growth was also supported by sustained traction in retail lending, particularly gold and vehicle loans, alongside robust MSME financing, increased bank exposure to non-banking financial companies and opportunistic corporate borrowing.

Aggregate bank deposits rose to INR 262.3 lakh crore, up 13.5 per cent year‑on‑year. However, on a sequential basis, deposits increased by 4.9 per cent in the previous fortnight, supported by typical year-end seasonality and liquidity flows.

Time deposits, which account for 85.9 per cent of total deposits, grew by 10.8 per cent y-o-y to INR 225.4 lakh crore, marginally higher than the 10.5 per cent growth recorded a year ago. Demand deposits too witnessed an acceleration, rising 32.4 per cent YoY, significantly above the 6.8 per cent growth in prior year.

The credit-to-total assets ratio stood at 73.9 per cent as on March-end, easing marginally by 30 bps from the previous fortnight.