Bank Credit Rises 19.4% Year-on-Year in H1 FY27 as Credit-to-Deposit Ratio Hits 81%

Key facts

• Indian banks ended the first half of FY27 with year-on-year credit growth of 19.4% and deposit growth of 17.8%, taking the credit-to-deposit ratio to 81% as of September 30, 2026.
• Total bank credit stood at over Rs 229.9 lakh crore and aggregate deposits at about Rs 284 lakh crore as of September 30, 2026.
• Large banks attributed the deposit increase to $133 billion mobilised under the FCNR(B) scheme.
• At the end of the first quarter (June 30, 2026), deposit growth was 13.3% and advances growth was 18.6%; a year earlier, at end-September 2025, credit growth was 11.4% and deposit growth 9.9%.
• Time deposits contributed Rs 36.3 lakh crore, or 84.5% of annual deposit growth, reaching Rs 246.6 lakh crore with 17.3% annual growth, while demand deposits rose 21.6% (Rs 6.6 lakh crore) to Rs 37.4 lakh crore.
• The credit-to-deposit ratio moved from 78.9% in September 2024 to 80.8% in March 2025, fell to 79.9% by September 30, 2025, and peaked at 81.4% on March 31, 2026.