New Delhi: Bank credit growth accelerated to an eight-quarter high of 16.5 per cent in the first quarter of FY27, but deposits grew at a much slower 11.3 per cent, widening the credit-deposit gap and increasing funding pressure on banks, CareEdge Ratings said in a report.
Credit outstanding rose to Rs 213.6 lakh crore as of June 30, 2026, while deposits stood at Rs 256.5 lakh crore. The 512-basis-point gap between credit and deposit growth was the widest in eight quarters, pushing the system's loan-to-deposit ratio (LDR) to a record 83.3 per cent.
