Bank credit growth in India slows to 15% in fortnight ended April 15: RBI

The Reserve Bank of India (RBI) has said that bank credit growth in India slowed to 14.88% year-on-year (YoY) in the fortnight ending April 15, 2026, as compared to 15.96% growth recorded in the previous fortnight ending March 31, 2026.

Bank credit stood at ₹214 lakh crore in the fortnight ended April 15, down from ₹218 lakh crore in the preceding fortnight. During the reporting period, overall credit in India contracted by 2.06%, or ₹4.51 lakh crore. In the fortnight ended April 18, 2025, total credit in India stood at ₹186 lakh crore.

During the fortnight ended March 31, Indian bank credit grew at its fastest pace in the last two fiscal years, as banks rushed to meet their balance sheet targets ahead of the financial year-end, resulting in a sharp increase in both loans and deposits. Bank credit growth stayed firmly in double digits for over seven consecutive months, reflecting sustained momentum in lending activity.

The acceleration in credit expansion gathered pace following a significant rationalisation of the Goods and Services Tax (GST) structure, which took place around September 2025. The continued double-digit growth indicates a revival in credit demand from both retail borrowe₹and corporates in recent months, underscoring improving economic activity and stronger financing needs across sectors.

On the other hand, deposits of banks grew 12.12% year-on-year in the fortnight ended April 15. In absolute terms, deposits stood at ₹261.88 lakh crore for the fortnight ended April 15, 2026, as compared to ₹233.56 lakh crore in the fortnight ended April 18, 2025. For the fortnight ended April 15, 2026, investments by banks in state and central government securities rose to ₹70.64 lakh crore, up from ₹68.49 lakh crore a year earlier.

During the Q4FY26 earnings, major private sector banks like HDFC Bank, ICICI Bank, and Axis Bank reported mid-double-digit advances growth, implying strong credit demand in the economy. The slowdown in credit growth will be monitored closely as the economy faces the impact of higher crude oil prices and supply shocks. In a distress scenario, the RBI could intervene with special actions to boost the credit demand.