Indian banks reported robust performance in the fortnight ending December 31, 2025, with deposits rising 12.7% year-on-year and loans expanding 14.5% year-on-year. The surge reflects strong credit demand across retail and corporate segments, alongside healthy deposit mobilization. Analysts view this as a sign of resilience in India’s banking sector.
India’s banking sector closed 2025 on a strong footing, with both deposits and loans showing double-digit growth. According to provisional data from the Reserve Bank of India, deposits rose 12.7% year-on-year, while loans grew 14.5% year-on-year in the fortnight ending December 31.
The faster pace of loan growth compared to deposits highlights sustained demand for credit across retail, MSME, and corporate segments. Analysts attribute this momentum to festive-season consumption, government-led infrastructure spending, and improved liquidity conditions.
Meanwhile, deposit growth reflects a shift toward term deposits as savers seek higher returns amid elevated interest rates.
Key Highlights:
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Deposits: Up 12.7% YoY, indicating strong mobilization across banks.
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Loans: Expanded 14.5% YoY, driven by retail and corporate demand.
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Credit vs. Deposits: Loan growth continues to outpace deposit growth.
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Drivers: Festive demand, infrastructure push, and higher interest rates supported growth.
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Investor Impact: Banking stocks remain buoyant, with Bank Nifty trading near record highs.
This performance underscores the resilience of India’s banking system and its pivotal role in supporting economic growth as the country enters 2026.
Sources: Business Standard, Economic Times, Moneycontrol, Times of India