Bank’s credit-deposit ratio touches 82.6% in Q1FY27
Indian banks' credit-deposit ratio reached 82.6% in Q1FY27 as loan growth outpaced deposit growth. Analysts attribute this trend to banks redeploying excess investments into loans and high capital levels.
Why it matters
A high credit-deposit ratio indicates aggressive lending by banks, which is a key indicator of economic activity and banking sector health.
Indian banks’ credit deposit (CD) ratio stood at 82.6% in the first quarter (Q1) of fiscal 2027 as loans grew faster than deposits, according to data from the Centre for Monitoring Indian Economy (CMIE).
Loans grew at 18.6% year-on-year (YoY) to ₹219.3 lakh crore, while deposits rose 13.3% YoY to ₹265.4 lakh crore in the reporting quarter. The variance between the loan and deposit growth is widest at 5 percentage points, since June quarter of fiscal 2024.
Loans grew least 8.5% in most quarters on a yearly basis since June quarter of 2022. Deposits however did not grow faster than 16% in the same period. Analysts say that it (CD ratio) has more to do with the change in the composition of the liabilities.
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