Year-on-year, credit growth at 14.40 per cent as of January-end 2026 is higher than deposit growth of 12.42 per cent, per RBI data.
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AJAY VERMA
A robust pick-up in credit and deposits in the last fortnight of January indicates that the Indian economy is gathering steam, shrugging off headwinds arising from higher US tariffs, global trade fragmentation and geopolitical tension.
Credits and deposits of all scheduled banks jumped ₹3,40,934 crore and ₹3,80,346 crore, respectively, in the fortnight ended January 31, 2026, reversing the decline on both fronts in the preceding fortnight, per the latest RBI data.
Credit as well as deposits of all scheduled banks declined ₹3,55,765 crore and ₹1,88,383 crore, respectively, in the preceding fortnight ended January 15, 2026.
The healthy credit offtake comes amid a strong build-up in the corporate loan sanctions pipeline by public sector banks and hardening rates in the corporate bond market. Banks that have disclosed their pipeline include State Bank of India (₹7.86 lakh crore), Punjab National Bank (₹1.02 lakh crore), and Bank of Baroda (₹75,000 crore).
Ashwini Kumar Tewari, Managing Director, State Bank of India (SBI), in a recent analyst call, observed that SBI is seeing a pick up in corporate loans, especially in the power, including renewables, metals and infrastructure sectors.
Further, the RBI’s move to allow commercial banks to extend finance to Real Estate Investment Trusts (REITs), which is a large market and growing fast, as well as finance acquisitions by Indian companies, will help SBI increase its corporate loan book, with better margins, he said.
Deposit inflows
In view of the downturn in equity markets late last month, Banks may have seen deposit inflows, especially bulk deposits, say experts.
Ashok Chandra, MD & CEO, Punjab National Bank, in an analyst concall, noted his Bank has 18 crore plus customers, and they have a lot of faith in the banking system.
“We are mindful of the deposits, the scenarios, the dynamic situation…So, we thought, let us continue the (current) deposit rates. That is the reason, in the third quarter…We have kept them intact,” he said.
Madan Sabnavis, Chief Economist, Bank of Baroda, attributed the deposit growth in the banking system to high-cost bulk deposits and Certificate of Deposits, which are being picked up to bridge the gap between credit and deposit growth.
Year-on-year, credit growth at 14.40 per cent as of January-end is higher than deposit growth of 12.42 per cent, per RBI data.
Referring to the credit pick up in the reporting fortnight, Sabnavis said: “It must be a case of the large corporates drawing down sanctions….retail loans and all that cannot swing the credit growth number so much.
“If you consider these kinds of large numbers, it’s definitely a case of saying there is buoyancy in the economy, which is getting reflected from higher demand in credit.”
Published on February 13, 2026
