Share of business in bank credit rises in FY26, deposits up

MUMBAI: Personal loan growth moderated to 12.9% as of end-March 2026 and fell below overall credit growth after outpacing it for several years. However, its share in total credit remained high at 30.7%. Loans to the private corporate sector accounted for more than one-fourth of total bank credit and grew 15.5% from 11.9% a year ago according to data released by RBI on its annual Basic Statistical Returns.

Meanwhile, deposit growth accelerated to 11.5% as of end-March 2026 from 10.6% a year ago, with all population groups recording double-digit growth. Over the past five years, the composition of deposits shifted, with the share of savings deposits declining to 28.7% in March 2026 from 34.6% in March 2022, while the share of term deposits increased to 61.6% from 55.2%.

Overall bank credit growth accelerated to 14.1% year-on-year as of end-March 2026 from 11.1% a year ago, reflecting broad-based expansion across sectors and geographies.

The share of loans bearing interest rates of less than 9% increased to 64.2% from 43.9%, in line with monetary policy actions during FY 2025-26.

The share of term deposits bearing interest rates of less than 7% increased to 61.8% from 27.3% a year ago. The share of senior citizens in total deposits remained stable at 20%, within a narrow range over the past four financial years.

Credit growth in agriculture and industry rose to 14.4% and 12.0% respectively from 8.1% and 9.4% a year ago. Their shares in total credit stood at 12.9% and 22.4%. Borrowings by the household sector increased 14.3%, accounting for 58.6% of total bank credit and around three-fifths of incremental credit during FY 2025-26. The share of individuals in total bank credit remained stable at 47.8%.

Within this segment, the share of female borrowers increased to 24.7% from 23.8% a year ago.
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