Topic
deposits
Credit Surges 17.7% as Deposit Slowdown Widens Funding Gap
Bank credit in India surged 17.7% year-on-year by May 31, 2026, the strongest since June 2024, while deposits declined by Rs 2.3 lakh crore since March 31, widening the funding gap to Rs 3.8 lakh crore. The credit-deposit ratio rose to 82.8%, squeezing bank liquidity and prompting adjustments in government securities holdings.
RBI Proposes Transparent Bulk Deposit Pricing Framework
The Reserve Bank of India (RBI) has proposed new rules to enhance transparency and flexibility in bulk deposit pricing. Banks will need to disclose interest rates upfront and consider withdrawal risks in pricing.
Business Credit Share Surges in FY26 Amid Rising Deposits
In FY26, business credit share in bank loans increased significantly, with private corporate sector loans growing by 15.5%. Deposit growth also accelerated to 11.5%, reflecting a shift towards term deposits.