Lok Sabha Question No. 277 (UNSTARRED), answered on 2026-02-02
Subject: Rising Bank Credit and Deposits
Ministry: FINANCE
Asked by: Shri Sribharat Mathukumilli

## GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF FINANCIAL SERVICES

## LOK SABHA UNSTARRED QUESTION NO. 277

ANSWERED ON MONDAY, FEBRUARY 2, 2026/ MAGHA 13, 1947 (SAKA) Rising Bank Credit and Deposits

277. 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;
- (c)  if  so,  whether  any  steps  are  being  taken  to  boost  deposit  mobilisation,  particularly  in underserved and unbanked areas;
- (d) if so, the details thereof;
- (e) 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;
- (f) if so, whether any steps are being taken by the Government 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 cybersecurity preparedness; and
- (g) if so, the details thereof?

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  |

## ANSWER

(b):  The  divergence in credit and deposit  growth  and its impact on overall financial stability  is assessed on a regular basis by the government and the RBI and the same is published at halfyearly frequency in RBI's Financial Stability Report (FSR). As per the RBI, credit growth of 1618% 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) & (d): 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.

(e): 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).

(f)  &  (g):  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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