Archive · 1 Feb 2026
Credit-Deposit Ratio Hits 25-Year High
The Credit-Deposit ratio in India has reached its highest level in 25 years, at 82.17%.
This means banks are lending more money than they are receiving in deposits.
Bank credit grew by 13.11% to Rs 201 lakh crore, while deposits only increased by 10.6% to Rs 244 lakh crore.
To attract more deposits, banks have increased the rates they offer on new deposits.
However, the rates on existing deposits have been decreasing.
Public sector banks and private sector banks have raised their new deposit rates, but foreign banks have kept their rates the same.
The Credit-Deposit ratio in India reached 82.17% as of January 15, 2026, the highest since January 2001.
Bank credit grew by 13.11% to Rs 201 lakh crore, while deposits increased by 10.6% to Rs 244 lakh crore.
The average fresh domestic term deposit rate increased to 5.67% in December 2025, up 8 basis points from November 2025.
Public sector banks and private sector banks raised fresh deposit rates by 7 bps and 8 bps, respectively, while foreign banks kept their rates unchanged.
The average outstanding deposit rate fell by 5 basis points to 6.68% in December 2025.
- Who
- Indian banks
- What
- Credit-Deposit ratio reached a 25-year high
- When
- As of January 15, 2026
- Where
- India
- Why
- Due to a sharp rise in advances and banks' struggle to mobilize deposits
- Credit-Deposit Ratio
- 82.17%
- Bank Credit Growth
- 13.11%
- Deposit Growth
- 10.6%
- Average Fresh Deposit Rate
- 5.67%
- Average Outstanding Deposit Rate
- 6.68%
