Indian banks' credit-deposit ratio hits record 83% as loans rise
Business
Indian banks are lending out more of their deposits than ever, hitting a record credit-deposit ratio of 83% as of March 15, 2026.
This happened because loans kept growing while deposits actually dropped by ₹1.8 lakh crore.
In the same period, bank credit went up by ₹18,672 crore, sending the incremental ratio soaring past the usual healthy range.
Loans outpace deposits 13.8% vs 10.8%
In the financial year to March 15, 2026, loans grew faster than deposits (13.8% vs. 10.8%), echoing trends seen after the pandemic when borrowing spiked.
With banks using more of their funds for lending, profits could rise, but so does risk if people can't pay back those loans.
Plus, some recent tweaks in how data is reported have made these numbers even clearer at quarter-ends.