MUMBAI: Credit growth surged to a high even as deposits shrank in the first two months of FY27, widening the funding gap and pushing banks deeper into a liquidity squeeze, with the wedge between loans and deposits reaching about Rs 3.8 lakh crore by May 31.

Bank loans are seeing a surge. Credit growth reached 17.4 percent by May 31, the highest in almost two years. This rise is driven by companies seeking loans as bond market yields…

MUMBAI: Credit growth surged to a high even as deposits shrank in the first two months of FY27, widening the funding gap and pushing banks deeper into a liquidity squeeze, with…