India's Bank Credit-Deposit Ratio Soars to 82%, Signaling Strong Economic Growth

• India's Credit-Deposit (CD) ratio continuously increased from 53% in 2000-01 to 82% by December 15, 2025, indicating better financial development.
• Incremental CD ratio often exceeded 100%, showing high credit demand despite slow deposit growth, met by banks raising resources from other sources.
• Post-pandemic, bank asset growth rebounded to 94% of GDP (from 77% in FY21), reflecting renewed credit intermediation and financial deepening.
• Deposits surged from ₹18.4 lakh crore to ₹241.5 lakh crore and advances from ₹11.5 lakh crore to ₹191.2 lakh crore between FY05-FY25.
• Banking employment nearly doubled over two decades, from 8.6 lakh to 18.1 lakh, with private banks accounting for 46% and PSBs 42%.

Why It Matters: India's rising bank CD ratio to 82% signifies robust financial development and strong economic growth.