Banks Post 11.5% Year-on-Year Loan Growth and 9.5% Deposit Growth as of October 17: RBI Data

According to the latest Reserve Bank of India (RBI) data for the fortnight ended October 17, 2025, Indian banks’ loan growth surged to an eight-month high of 11.5% year-on-year, reflecting robust credit demand fueled by festivities and consumption. Meanwhile, deposit growth showed a moderate deceleration to 9.5%, indicating a shift in savings behavior amid evolving economic conditions.

Key Highlights:

Bank loans stood at ₹192.12 trillion as of October 17, marking an 11.5% year-on-year increase, the highest since January 2025.

Deposit base expanded to ₹238.83 trillion, up 9.5% year-on-year but down ₹2.15 trillion from the previous fortnight.

Loan growth outpaced deposit growth, signalling strong credit uptake relative to deposit mobilization.

Investments by banks rose 6.1% year-on-year to ₹68.85 trillion, with a fortnightly increase of ₹88 billion.

The pickup in credit growth is partly attributed to lower GST rates and festive season-driven consumption.

The moderation in deposit growth reflects changing investor preferences amid lower fixed deposit rates.

This data underscores a resilient credit environment supporting India’s economic growth, while deposits reflect evolving market dynamics.

Sources: Reserve Bank of India, Informist Media, Economic Times