India’s credit-deposit ratio has remained below 80% for the fourth consecutive fortnight, as tepid credit growth continues to outpace deposit growth, according to CareEdge Ratings. As of May 16, 2025, credit offtake reached Rs 182.3 lakh crore, marking a y-o-y increase of 9.8%. This is slower than the 15.8% growth observed in the previous year (excluding merger impact).
The slowdown in credit growth is attributed to a high base effect, muted growth across various segments, and typical behaviour at the beginning of the fiscal year. Meanwhile, deposits grew by 10% y-o-y, totalling Rs 228.9 lakh crore as of May 16, 2025. This is a decrease from the 12.7% growth seen last year (excluding merger impact), primarily due to a higher base effect and lower deposit interest.
The credit-to-deposit (CD) ratio saw a marginal increase, reaching 79.6% as of May 16, 2025, up by 25 basis points from the previous fortnight. This modest rise is due to a lower credit outflow of Rs 0.58 lakh crore compared to a lower deposit inflow of Rs 1.45 lakh crore during the same fortnight.
Banks have increasingly relied on Certificates of Deposit (CDs) to raise funds amid subdued deposit growth. The total outstanding CD issuances reached Rs 5.11 lakh crore for the fortnight ending May 16, 2025, a significant y-o-y growth of 39.3%. Total CD issuances for FY25 amounted to Rs 11.9 lakh crore, up from ₹8.7 lakh crore in the previous year, the report stated.
