Bank credit growth outpaces deposits at 17.94%
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Bank credit expanded 17.94 per cent year-on-year to reach Rs 232.54 lakh crore for the period ending October 15, exceeding the 16.6 per cent deposit growth rate, according to Reserve Bank of India (RBI) figures released Friday.Data reveals bank deposits rose to Rs 284.37 lakh crore by October 15, 2026, up from Rs 243.88 lakh crore on October 17, 2025—marking a 16.60 per cent annual increase.Reserve Bank of India (RBI) records indicate bank credit climbed to Rs 232.54 lakh crore as of October 15, 2026, compared to 197.17 lakh crore on October 17, 2025, recording a 17.94 per cent rise.Also read: Banks must go beyond lending to unlock Bengal's industrial potential: NITI Aayog's Ashok LahiriThis accelerated credit growth was driven by buoyant banking system liquidity during early October alongside India's festive season demand. The sector experienced strong liquidity inflows following substantial deposits collected through banks under the RBI's concessional FCNR (B) scheme.RBI data shows banking system liquidity surplus hovered between Rs 2 lakh crore and Rs 4.5 lakh crore throughout the October 1–15 period.During August and September, system liquidity expanded noticeably following initiatives aimed at encouraging foreign capital inflows. Based on net positions under the LAF, daily liquidity surplus averaged Rs 5.9 lakh crore after the August 2026 MPC session.Average daily net absorption under the LAF surged from Rs 1.2 lakh crore in July 2026 to Rs 5.8 lakh crore in August, climbing further to Rs 7.8 lakh crore in September.Additionally, commercial bank holdings in central and state government securities expanded 9.64 per cent year-on-year to Rs 77.32 lakh crore as of October 15, 2026, compared to Rs 70.53 lakh crore on October 17, 2025.Central government securities comprised the dominant share of these holdings, rising to Rs 77.12 lakh crore by October 15, 2026, up from Rs 70.42 lakh crore in the prior year, RBI data confirmed.
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