Bank deposit growth surpassed credit offtake by 20 bps in the fortnight ending August 22, 2025, a report said on Tuesday. 

As of August 22, credit off take was Rs 186.4 lakh crore, showing a 10 per cent increase year-on-year (YoY), significantly lower than the 14.9 per cent growth seen in the previous year, the report from ratings agency CareEdge Ratings said.

The credit-deposit ratio remained flat sequentially at 79.3 per cent, staying below 80 per cent for the 11th consecutive fortnight.

Deposits increased 10.2 per cent YoY to Rs 235 lakh crore, down from 11.3 per cent growth the previous year. The slower growth is mainly driven by an ongoing deposit repricing and increased availability of alternative investment options, the report noted.

Credit expanded by Rs 0.39 lakh crore on a fortnightly basis, and the moderation in credit growth was driven by subdued corporate demand, muted private capital expenditure, slower unsecured personal lending, and weaker credit flows to non-banking financial companies (NBFCs).

Time deposits grew by 9.2 per cent to Rs 206.1 lakh crore, moderating from 10.9 per cent growth in the corresponding period last year, the report noted. Meanwhile demand deposits grew 18.2 per cent to Rs 28.9 lakh crore, it added.

The Short-Term weighted average call rate (WACR) at which banks borrow and lend funds in the overnight interbank call money market dropped to 5.45 per cent as of August 29, from 6.59 per cent one year ago. WACR fell below the policy repo rate of 5.50 per cent following three rate cuts this year and liquidity management by the Reserve Bank of India (RBI).

Banks’ credit-to-assets ratio remained flat at 72.1 per cent, while the government investment-to-assets ratio decreased one basis point to 26.1 per cent. Overall government investments increased to Rs 67.6 lakh crore, reflecting a 6.2 per cent YoY growth.