Bank credit growth recorded 14.6%, the highest in 19 months, for the fortnight ended January 31, 2026. Bank credit stood at Rs 204 lakh crore, compared with Rs 178 lakh crore a year earlier, according to data released by the Reserve Bank of India on Friday. On a fortnightly basis, credit growth rose by 1.7% or Rs 3.4 lakh crore from Rs 201 lakh crore.
The deposit growth too jumped for the fortnight, reporting an 12.45% rise to 248 lakh crore (Rs 221 lakh crore). Interestingly, over the fortnight, deposit growth in absolute terms surged more than credit growth. The deposit rose by Rs 3.82 lakh crore or 1.6% from Rs 244 lakh crore.
Interestingly, despite the rise in deposits, the credit-deposit ratio continued its upward trajectory, hitting a new all-time high of 82.29% for the fortnight ended January 31, 2026.
Record Credit-Deposit Ratio
Gaura Sengupta, chief economist at IDFC First Bank, said, “The simultaneous pickup in deposits and credit is a very healthy sign for the system. When deposit mobilisation strengthens even as credit demand rises, it shows that liquidity is circulating productively through the economy rather than creating stress on bank balance sheets. This is exactly the kind of monetary–financial alignment you want to see in a broad-based recovery.”
She stated that the recent pickup in deposit growth is not accidental; it reflects the transmission of the RBI’s liquidity infusion into the banking system. With reserve money growth now running above 10%, we are finally seeing the early stages of a broader monetary expansion. “With reserve money finally moving back above 10%—a pace we haven’t consistently seen since 2022—and that liquidity is now feeding into both sides of the banking system,” Sengupta added.
Credit continues to outpace deposits, but as liquidity works its way through productive sectors, deposit mobilisation will strengthen further. This is a healthy sign of an economy where both consumption and investment demand are gaining traction, added economists.
Cyclical Recovery
“Credit growth edging up to the mid-teens is an important marker of cyclical recovery. While private capex has been slow to restart, the rise in term loans to listed companies suggests the first leg of the capex cycle is forming. With trade uncertainties easing and domestic demand holding firm, we expect a more decisive private capex upturn in FY27,” said Sengupta.