Bank credit growth slows to 18.3%, but deposit growth also moderates
Economic Times 3 hrs ago·1 Sept 2026, 5:40 am
India's banking sector is seeing a shift in momentum. Bank credit growth has slowed to 18.3% for the latest reported fortnight, down from a sharp expansion in July. This moderation is largely attributed to a higher comparison base from the previous year, rather than a sudden drop in borrowing.
This trend is significant for investors as it signals a cooling phase in credit demand. While a slowdown can reduce the pace of economic expansion, it also helps prevent overheating. The simultaneous moderation in deposit growth suggests banks are finding it slightly harder to match the pace of lending, which is a key metric to watch for future liquidity conditions.
Key takeaways
- Category: Economy.
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