Mumbai, Nov 13 (PTI) Bank credit growth accelerated to 19.26 per cent year-on-year in the fortnight ended October 31 from 17.94 per cent in the previous fortnight, the Reserve Bank of India said on Friday.
The sharp surge in credit growth reflects the demand for loans before the festive season, especially Diwali.
Bank credit grew to Rs 237.03 lakh crore as of October 31, 2026, from Rs 198.76 lakh crore as of October 31, 2025, RBI data showed.
Traditionally, demand for credit picks up ahead of and during the festive season, as consumers borrow to finance purchases of consumer durables, homes and vehicles, among other items, leading to a sharp increase in bank credit growth.
Deposit growth edged up marginally to 16.76 per cent as of October 31, 2026. Bank deposits had grown 16.6 per cent year-on-year in the fortnight ended October 15.
As of October 31, bank deposits stood at Rs 288.16 lakh crore, compared to Rs 249.79 lakh crore a year earlier.
The faster growth in credit compared to deposits widened the gap between the two to 2.5 percentage points as of October 31, from 1.34 percentage points in the previous fortnight.
The sustained higher growth in credit than deposits indicates continued strong demand for loans even as banks mobilise deposits to support credit expansion.
Further, investments by the banks in central and state government securities rose 9.36 per cent year-on-year to Rs 77.19 lakh crore as of October 31, 2026, from Rs 70.58 lakh crore till October 31, 2025.
Of the total, investments in central government securities have the largest share, rising to Rs 77.03 lakh crore as of October 31, 2026, up from Rs 70.49 lakh crore a year earlier, RBI data showed.
