India's bank credit shot up by 19.5% in October, hitting a two-year high as people and businesses borrowed more during the festive season, said the Reserve Bank of India.
The total outstanding loans reached ₹231.8 lakh crore, with much of the growth coming from lending to NBFCs, small businesses, and gold loans.
CareEdge Ratings expects 15%-16% credit growth
While this surge is impressive, CareEdge Ratings expects credit growth to cool off to around 15% to 16% by end-March 2027 as things settle down post-festivals and gold loan demand evens out.
Deposits are also rising steadily, up to ₹282.5 lakh crore, showing that banks are keeping pace with changing needs as India continues its economic comeback.