For the first time since January 2001, the Credit–Deposit (CD) ratio has touched a multi‑decadal high of 82.17% as on January 15, 2026.
The sharp rise in advances, coupled with banks’ continued struggle to mobilise deposits, has pushed the CD ratio upward. Bank credit grew 13.11% to Rs 201 lakh crore, while deposits rose 10.6% to Rs 244 lakh crore.
Rising Deposit Rates
The pressure on banks to garner deposits is evident from the rise in fresh deposit rates.
In December, the average fresh domestic term deposit rate (WADTDR) increased to 5.67%, up 8 basis points (bps) from November 2025.
Public sector banks (PSBs) and private sector banks raised fresh deposit rates by 7 bps and 8 bps, respectively, while foreign banks kept their rates unchanged.
Falling Outstanding Rates
Meanwhile, outstanding deposit rates continued their downward trend. In December 2025, the average outstanding deposit rate fell 5 bps to 6.68%.
PSBs reduced rates by 4 bps, while private sector and foreign banks cut rates by 6 bps and 1 bp, respectively.