India's bank credit-deposit ratio hits 62-year high in Q1 FY27
India's bank credit-deposit (CD) ratio reached a 62-year high of 82.6% in the first quarter of fiscal 2027, driven by loans growing significantly faster than deposits. Loans expanded by 18.6% year-on-year (YoY) to ₹219.3 lakh crore, while deposits grew by 13.3% to ₹265.4 lakh crore. This 5-percentage point variance between loan and deposit growth is the widest since Q1 FY24. Analysts attribute this high CD ratio partly to banks redeploying excess investments from their balance sheets into loans and robust capital levels.
Key Points
- India's bank credit-deposit (CD) ratio reached a 62-year high of 82.6% in Q1 FY27.
- Loan growth significantly outpaced deposit growth, with loans at 18.6% YoY and deposits at 13.3% YoY.
- The variance between loan and deposit growth was 5 percentage points, the widest since Q1 FY24.
- Analysts attribute the high CD ratio to banks redeploying excess investments and strong capital levels.
Exam Facts
- The CD ratio stood at 82.6% in Q1 FY27.
- Loans grew at 18.6% YoY to ₹219.3 lakh crore.
- Deposits rose 13.3% to ₹265.4 lakh crore.
- Data is from the Centre for Monitoring Indian Economy (CMIE).
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