Credit-deposit (CD) ratio of all scheduled banks widened to about 255 basis points as on March-end 2026 from about 91 bps as on April 4, 2025 amid credit growth outpacing deposit growth, going by latest RBI data.
As on March-end 2026, credit and deposit growth of these banks stood at 15.96 per cent and 13.41 per cent, respectively.
As on April 4, 2025, all scheduled banks’ credit and deposit growth stood at 10.9 per cent and 9.99 per cent, respectively.
In view of the widening gap between credit and deposit growth, banks increased issuances of certificates of deposit (CDs) to bridge the year-end funding gaps amidst the rollover of maturing papers, according to RBI’s latest monthly bulletin.
The rates on 3-month CDs averaged 7.18 per cent since RBI’s February 2026 policy. In February 2026, 3-month CD rates averaged about 5 per cent.
During the current easing cycle February 2025-February 2026, whereby the repo rate cumulatively came down by 125 bps from 6.50 per cent to 5.25 per cent, the weighted average lending rate (WALR) of scheduled commercial banks on fresh and outstanding rupee loans declined by 89 bps and 87 bps, respectively, per the bulletin.
On the deposit side, the weighted average domestic term deposit rate on fresh and outstanding deposits declined by 97 bps and 47 bps, respectively, over the same period.
Published on April 15, 2026