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%.  

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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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