As at February-end 2026, credit growth and deposit growth stood at 15.19 per cent and 13.03 per cent, respectively.
| Photo Credit:
Andrii Yalanskyi
Banks have logged a robust growth in deposits and advances in the fortnight ended February 28, 2026, reversing the declining trend of the preceding fortnight.
In the reporting fortnight, deposits and advances of all Scheduled Banks jumped ₹4,20,091 crore and ₹3,24,432 crore, respectively, per RBI’s Scheduled Banks’ Statement of Position in India.
In the preceding fortnight, deposits and advances of all Scheduled Banks had declined ₹1,03,192 crore and ₹35,440 crore, respectively.
Madan Sabnavis, Chief Economist, Bank of Baroda, observed that since the equity markets are not doing well, reverse migration of funds into deposits is happening. Further, Banks are raising bulk deposits to support credit growth.
He attributed the pick up credit to the corporate loan sanctions pipeline actually materialising.
Sanjay Agarwal, Senior Director, CareEdge Ratings, noted that with yields in the bond markets hardening, India Inc is finding borrowing from Banks relatively cheaper.
Banking expert V Viswanathan noted that deposit accretion during the reporting fortnight is divided between CASA (current account, savings account) and term deposits almost equally.
“When it comes to the increase in CASA deposits, States, where elections are due this year, could have seen increased spending by Governments before the election date is announced.
“Another reason for increase in CASA and term deposits is that the money withdrawn from stocks and mutual funds is finding its way to banks as deposits under both categories. Increase in Certificates of Deposit for credit deployment might have also contributed to Term Deposit increase,” he said.
In respect of advances, Viswanathan said the increase in corporate advances, which were committed/ sanctioned earlier might have been extended by banks. Retail credit could not have contributed to such an increase in overall credit in a fortnight.
Credit growth continues to surpass deposit growth on year-on-year basis. As at February-end 2026, credit growth and deposit growth stood at 15.19 per cent and 13.03 per cent, respectively.
Published on March 13, 2026
