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Bank deposit and credit growth slow in fortnight ended October 15

24 October 20261 min read
BANKING & FINANCEBank deposit andcredit growth slowin fortnight endedOctober 1524 October 2026safalsetu.com

Why in the news

Fortnightly Reserve Bank of India (RBI) data released on 23 October 2026 showed that year-on-year growth in both bank deposits and bank credit slowed in the fortnight ended 15 October 2026.

Key facts

  • Deposit growth came down to 16.7%, compared with 17.8% in the previous fortnight.
  • Credit growth slowed to 18.2%, down from 19.4%.
  • Outstanding deposits were ₹278.76 lakh crore, while outstanding credit was ₹227.43 lakh crore.
  • During the fortnight, deposits saw a net outflow of ₹5.19 lakh crore and outstanding credit shrank by ₹2.52 lakh crore.
  • The credit-to-deposit (C-D) ratio stayed broadly stable at 81.59%.

Data at a glance

IndicatorPrevious fortnightFortnight ended 15 Oct 2026
Deposit growth (y-o-y)17.8%16.7%
Credit growth (y-o-y)19.4%18.2%
Outstanding deposits–₹278.76 lakh crore
Outstanding credit–₹227.43 lakh crore

About the credit-to-deposit ratio

The C-D ratio shows how much of the money banks raise as deposits has been lent out. A ratio of 81.59% means banks had lent roughly ₹81.59 for every ₹100 held as deposits. When deposits flow out and liquidity tightens, banks may raise deposit rates to attract funds, which can squeeze their margins if they cannot pass the higher cost on to borrowers.

Exam angle

  • The RBI releases data on scheduled commercial banks’ deposits and credit every fortnight.
  • C-D ratio = credit divided by deposits, multiplied by 100.
  • Remember the figures: deposits ₹278.76 lakh crore, credit ₹227.43 lakh crore, C-D ratio 81.59%.

Test yourself

1. What was bank credit growth in the fortnight ended 15 October 2026, according to RBI data?

Credit growth slowed to 18.2% from 19.4% in the previous fortnight.

2. What was the banking system's credit-to-deposit ratio in the fortnight ended 15 October 2026?

The C-D ratio stood at 81.59%, broadly stable despite the deposit outflow.

3. How large was the net deposit outflow from banks in the fortnight ended 15 October 2026?

Deposits saw a net outflow of ₹5.19 lakh crore; credit fell by ₹2.52 lakh crore.

Sources: Whalesbook (RBI data)