Loan-to-Deposit Ratio Hits 82%: What it Means for India's Economy

• India's loan-to-deposit (LDR) ratio reached 82% by December 15, 2025, up from 53% in FY2000-01, indicating improved financial development and strong economic growth.
• Incremental LDR often exceeded 100%, showing high credit demand despite slower deposit growth, with banks sourcing funds elsewhere.
• Bank assets grew to 94% of GDP from 77% in FY2020-21, reflecting increased credit intermediation and financial depth post-COVID.
• Over two decades, deposits surged to INR 241.5 lakh crore and loans to INR 191.2 lakh crore, with faster loan growth pushing LDR from 69% to 79% between FY2020-21 and FY2024-25.
• Public sector banks are improving market share, while banking sector employment nearly doubled to 18.1 lakh, with officers' share rising to 76%.

Why It Matters: Rising loan-to-deposit ratio signals robust economic growth and financial deepening, but slower deposit growth poses a risk.