Bank credit expanded significantly in the fortnight ending June 30. Deposit growth also showed a healthy increase during the same period. This credit demand stems from both consumer and corporate sectors. Corporate entities are increasingly favoring banks over debt markets for funding. The gap between credit and deposit growth widened to 570 basis points.

Credit extended by non-banking financial companies (NBFCs) grew 14.2 per cent year-on-year in May 2026 from 11.4 per cent a year ago with retail loans emerging as major credit…

Bank credit growth is expected to moderate gradually in the upcoming fiscal year. Large corporations will increasingly use domestic bond markets and overseas borrowings for…