Credit Growth

India’s economic growth is not always bank-led

Private banks beat PSBs on deposit growth in Q1FY26, per provisional data

Nonetheless, tepid growth in current and savings account deposits has sustained in the April-June quarter.

Banking Central | Home Loans: Will lower rates spark a credit boom?

The link between lower rates and credit growth isn’t always straightforward. While cheaper loans are enticing, several factors could temper their impact. For one, consumer sentiment remains cautious.

How deep is the slowdown in bank credit?

MSME credit is the silver lining in bank loan growth, growing at 14.6 percent in May

Chart of the Day | RBI’s liquidity push under Sanjay Malhotra: Fuelling credit growth or falling short?

Liquidity is available but that’s not enough to push up credit growth.

Indian banks profits may dip in FY26 on margin squeeze, says CRISIL report

The report pegs credit growth at 12-13 percent but says deposit growth remain a critical bottleneck

India’s corporate credit holds strong amid global risks, says Crisil report

The reaffirmation rate climbed to approximately 83% , surpassing the 10-year average of 82.5% for the first time since FY22.

Economic Survey 2025 pins steep interest rates and RBI's curbs on unsecured loans for moderation in credit growth

Overall bank credit growth had slowed to 7.7 percent, a clear reflection of the impact of higher lending rates stemming from monetary policy adjustments and the RBI's regulatory tightening, the report says

Bajaj Finance launches BFL 3.0, targets 3.2-3.5% share in total credit market by FY25

BFL 3.0 aims to meet the financial needs of its 200 million customers by integrating AI technology across all operations, the management said

Pitch Report: Banks look for capex push and tax incentives to drive deposit growth from Budget 2025

Analysts expect the government to maintain a strong focus on capital expenditure, particularly in roads, railways, and urban development, to spur investment opportunities and thus credit demand for banks.

A booming securitisation market would be put to the test soon

Bundling loans together and selling them has become a popular source of funding for banks amid deposit growth slowdown

A great moderation awaits NBFCs as funding growth from banks hits 3-year low

NBFCs are risk takers but riskier lending is under the regulatory glare now.

Regulatory steps, tight funding to weigh on credit growth, asset quality of banks, NBFCs: Icra

The growth in assets under management (AUMs) of NBFCs is expected to slow down to 16-18 percent in FY25 from 25 percent in FY24

Banks have a new-found love for industries. Sign of a reviving economy?

The shift in lending patterns is indicative of critical undercurrents in the economy. Money typically flows more to segments where economic activity is strengthening

Slowing personal, farm lending drags bank credit growth by 6 percentage points

Banks reported a credit growth of 13.7 percent in July 2024, compared to 19.5 percent in July 2023. This was due to the banks’ focus on managing the credit-deposit (CD) ratio and slow growth in personal and agriculture loans, research reports said.

Deposits are the focal point but it's intra-bank borrowings that need scrutiny

Credit growth outpaced deposits in 17 of the last 33 years. Lagging deposit growth therefore should not be a reason for concern. It’s greater reliance by banks on borrowings to fund incremental credit that’s causing anxiety

Why is bank credit growth slowing down?

Incremental deposit growth has overtaken credit growth in recent months as banks went aggressive on deposit mobilisation and credit growth slowed following RBI action

Here’s how to bypass the hurdle of credit-deposit growth mismatch

Indian banks have experienced significant credit growth in the post-pandemic years, but weak deposit growth threatens to undermine this progress. Permitting banks to issue bonds could address the challenge of sluggish deposit growth

Private banks continue to bet on physical branch expansion to garner deposits

Banks are facing challenges to garner more deposits. And deposit growth has not been in line with credit growth which has worried the RBI

SBI, peer PSU banks seek govt nod for incentives to beef up deposits: Report

As per the report, banks have made representations to senior government officials flagging the slowdown in deposit growth.

Banks' credit growth in FY25 to slow down to 14% on lower GDP uptick, RBI measures: Crisil

The slowdown will be due to lower GDP growth at 6.8 per cent in FY25, as against 7.6 per cent in FY24, RBI measures like higher risk weights on unsecured loans and also a high base, the agency said.

Icra revises downwards banking sector outlook to stable on credit growth moderation in FY25

The agency said the credit growth will moderate to 11.6-12.5 per cent in FY25 from 16.3 per cent (excluding the impact of the HDFC twins merger) in FY24, while the lower net interest income margins on higher deposit rate payouts will lead to a dip in profits.

Expect LCR framework to help banks manage liquidity efficiently, says Dinesh Khara

RBI governor Shaktikanta Das said on April 5 that the central bank would soon issue a draft circular to review the LCR for banks

Banks report robust deposit growth compared to slow credit growth in Q4

Provisional numbers in the last quarter of FY24 showed banks reporting robust deposit growth.

Indian banks' profitability to remain healthy despite slight moderation, says Moody's

'Banks' funding and liquidity will be stable. We continue to expect strong government support for banks in times of need,' the ratings agency said.