Bank Credit Growth Declines

The Reserve Bank of India (RBI) announced on Wednesday that the growth of bank credit has slowed to 15% for the fortnight ending April 15. According to the latest data, the lending rate decreased to 14.88% year-on-year, down from 15.96% recorded in the previous fortnight. During this reporting period, total credit saw a decline of 2.06%, amounting to ₹4.51 lakh crore.

For the fortnight ending April 15, bank credit stood at ₹214 lakh crore, compared to ₹218 lakh crore for the previous 15-day period ending March 31.

Total Credit at ₹186 Lakh Crore

According to RBI data, total credit was ₹186 lakh crore for the fortnight ending April 18 last year. During the fortnight ending March 31, bank credit grew at its fastest pace in the last two financial years, as banks rushed to meet their balance sheet targets before the fiscal year-end, resulting in significant increases in both loans and deposits. This growth has remained in double digits for over seven months, indicating sustained lending activity.

The acceleration in credit expansion followed the government's measures to streamline the Goods and Services Tax (GST) framework last September. This consistent double-digit growth signals a revival in credit demand from both retail borrowers and corporates, highlighting improved economic activities and strong funding needs across various sectors.

Increase in Deposits

Meanwhile, for the fortnight ending April 15, bank deposits increased by 12.12% year-on-year. Overall, the deposits for the 15-day period ending April 15 this year reached ₹261.88 lakh crore, compared to ₹233.56 lakh crore for the fortnight ending April 18, 2025. During the reporting period, banks' investments in state and central government securities rose to ₹70.64 lakh crore, up from ₹68.49 lakh crore a year earlier.