New Delhi : Bank deposits growth outpaced credit off-take in the fortnight ending August 22, 2025, with deposits rising 10.2% year-on-year, while lending grew at a slower pace, keeping the credit-to-deposit ratio at 79.3%, according to a report by CareEdge Ratings.
As of August 22, 2025, credit offtake reached Rs 186.4 lakh crore, marking a 10 per cent year-on-year (YoY) rise. This growth was significantly lower than the 14.9 per cent recorded the previous year. In contrast, deposits increased 10.2 per cent YoY to Rs 235 lakh crore, down from 11.3 per cent growth last year. The slower deposit growth stems from ongoing deposit repricing and the rising availability of alternative investment options.
On a fortnightly basis, credit expanded by Rs 0.39 lakh crore. The moderation in lending was attributed to subdued corporate demand, weaker private capital expenditure, slower unsecured personal lending, and reduced credit flows to non-banking financial companies (NBFCs).
Time deposits rose 9.2 per cent to Rs 206.1 lakh crore, moderating from 10.9 per cent growth during the corresponding period last year. Demand deposits grew 18.2 per cent to Rs 28.9 lakh crore.
The Short-Term Weighted Average Call Rate (WACR), at which banks borrow and lend funds overnight in the interbank market, fell to 5.45 per cent as of August 29, down from 6.59 per cent a year ago. The rate dipped below the policy repo rate of 5.50 per cent following three rate cuts this year and effective liquidity management by the Reserve Bank of India (RBI).
Banks’ credit-to-assets ratio remained steady at 72.1 per cent, while the government investment-to-assets ratio fell slightly by one basis point to 26.1 per cent. Overall government investments rose to Rs 67.6 lakh crore, reflecting a 6.2 per cent YoY increase.
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