Lok Sabha Question No. 3734 (UNSTARRED), answered on 2026-03-16
Subject: Banking Sector and Credit Availability
Ministry: FINANCE
Asked by: Shri Sribharat Mathukumilli

## GOVERNMENT OF INDIA MINISTRY OF FINANCE

## DEPARTMENT OF FINANCIAL SERVICES

## LOK SABHA UNSTARRED QUESTION NO. 3734

ANSWERED ON MONDAY, MARCH 16, 2026/ PHALGUNA 25, 1947 (SAKA)

Banking Sector and Credit Availability

## 3734 SHRI SRIBHARAT MATHUKUMILLI :

Will the Minister of FINANCE be pleased to state:

- (a) the rate of growth of bank credit and bank deposits in Scheduled Commercial Banks during the last three years, year-wise;
- (b) whether the Government has assessed the implications of a sustained gap between credit growth and deposit growth on overall financial stability of banks, if so, the details thereof;
- (c) whether any steps are being taken to boost deposit mobilisation, particularly in underserved and unbanked areas, if so, the details thereof;
- (d) whether the Government is considering expanding scenario-based stress testing frameworks to include Non-Banking Financial Companies (NBFCs) and cooperative banks in order to strengthen system-wide resilience, if so, the details thereof; and
- (e) whether any steps are being taken by the Ministry to strengthen risk management frameworks of financial institutions in view of prevailing global geopolitical uncertainties, particularly in areas of foreign exchange exposure, external commercial borrowings and cyber-security preparedness and if so, the details thereof?

## ANSWER

THE MINISTER OF STATE FOR FINANCE (SHRI PANKAJ CHAUDHARY)

(a): Reserve Bank of India (RBI) has informed that the growth rates of bank credit and bank deposits in Scheduled Commercial Banks (SCBs) during the last three years are as under: -

| FY      |   Credit Growth (y-o-y %) |   Deposits Growth (y-o-y %) |
|---------|---------------------------|-----------------------------|
| 2022-23 |                     15.82 |                       10.2  |
| 2023-24 |                     19.13 |                       13.55 |
| 2024-25 |                     11.07 |                       10.6  |

(b): The divergence in credit and deposit growth and its impact on overall financial stability is assessed on a regular basis by the RBI and the same is published at half-yearly frequency in RBI's Financial Stability Report (FSR). As per the RBI, credit growth of 16-18% remains sustainable and the current growth rates are well below that. The RBI's latest stress test (December 2025) confirmed the resilience of  Indian  banking,  supported  by  strong  capital,  liquidity,  and  profitability.  The  Banking  Stability Indicator  (an  aggregate  indicator  of  the  banking  system's  robustness)  published  in  RBI's  FSR highlighted improved soundness and asset quality, with easing market risks partly offsetting pressures from weaker liquidity and profitability metrics.

(c):  Banks adopt different strategies to mobilise deposits, particularly in underserved and unbanked area, including, inter alia, the following-

- a) Expanding branch network.
- b) Targeting specific deposit concentrations, e.g. micro-markets in larger towns or geographic regions or corporate salary accounts.
- c) Increasing  strategic  focus  on  deposits  growth  through  devising  innovative  and  customized products e.g. external benchmark linked deposit products.
- d) Running specific campaigns for different customer types, product types, etc.
- e) Leveraging data analytics to analyse the spending patterns of the customers/ satisfaction level for different banking products/features and new requirements to restructure the deposit products to suit the life style of the customers.

(d): RBI has informed that stress testing as single-factor sensitivity analysis, is conducted regularly for Urban Co-operative Banks (UCBs) and Non-Banking Financial Companies (NBFCs), and the results are published in the Financial Stability Report (FSR).

(e): In view of prevailing global and geopolitical uncertainties, steps have been taken to strengthen the risk  management  frameworks  of  financial  institutions.  In  this  regard,  prudential  and  supervisory measures undertaken by RBI to address risks  relating  to foreign exchange  exposures and External Commercial Borrowings include, inter alia , incremental capital requirements for foreign exchange and gold  exposures  under  Basel  III,  additional  capital  and  provisioning  norms  for  unhedged  foreign currency  exposures,  and  monitoring  of  liquidity  and  currency  mismatches  through  prescribed regulatory  reporting  frameworks.  With  regard  to  cyber-security  preparedness,  RBI  has  provided overarching  guidance  to  Regulated  Entities  (REs)  to  strengthen  their  operational  risk  management frameworks  and  enhance  operational  resilience  with  REs  having  adopted  advanced  technologies, including  Artificial  Intelligence  and  Machine  Learning,  for  effective  transaction  monitoring  and reporting of suspicious transactions,  including  suspected  money  mule  accounts,  to  Financial Intelligence Unit - India.

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