Overview
- Bank credit rose 14.41% year on year in the fortnight ended January 31, reaching about ₹204.75 lakh crore as outstanding loans expanded by ₹3.41 lakh crore, or 1.7%.
- System deposits increased 12.5% year on year to ₹248.81 lakh crore in the same period, with a fortnightly rise of ₹3.82 lakh crore, or 1.6%.
- The late-January pickup followed a brief mid-January soft patch when credit growth eased to 13.1% and outstanding loans and deposits contracted by ₹1.88 lakh crore and ₹3.57 lakh crore, respectively.
- Reporters and analysts attribute the sustained upturn to lower borrowing costs, GST simplification, a revival in wholesale and corporate lending, festive-season demand, retail loan growth and stronger trade finance.
- Reflecting the momentum, State Bank of India lifted its FY26 credit growth guidance to 13–15% after strong quarterly results, noting double-digit expansion across retail, SME and corporate segments.