Bank Credit Grows 19.38% to ₹230 Trillion by September 2026 End

Banks added considerably more credit in the first half of FY27 than they did a year earlier. Credit outstanding reached ₹230 trillion in the fortnight ended September 30, while deposits climbed to ₹283.95 trillion, according to the Reserve Bank of India (RBI), as per news report. 

On a fortnightly basis, credit grew by more than 3% and deposits rose 2.8%. 

First-Half Credit Addition Reaches ₹16.35 Trillion 

Banks added ₹16.35 trillion in credit during April-September FY27, compared with ₹10.17 trillion in the same period last year. Deposit additions also increased, reaching ₹21.67 trillion against ₹15.18 trillion a year earlier. 

Repo Rate Increase May Raise Funding Costs 

The RBI raised the repo rate by 25 basis points to 5.50% on October 7, 2026. CareEdge expects the increase to feed into lending rates, initially affecting loans linked to external benchmarks and later those tied to MCLR as funding costs adjust. 

Short-term market rates had already risen before the policy decision. The 91-day Treasury bill yield increased to 5.39% from 5.21%, while the lower end of certificate of deposit rates moved to 5.77% from 5.57%.  

Read More: Jio Platforms Files 7,220 Patent Applications, Becomes Only Indian Firm in Global Top 20! 

Conclusion 

Credit growth remained strong through the first half of FY27, but higher funding costs and tighter liquidity can temper lending in the second half. 

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