India's banks are handing out more loans, but deposits aren't keeping up
Published on: July 4, 2026, 1:55 p.m. | Source: The Economic Times
Indian banks witnessed a surge in lending during the April-June quarter, outpacing deposit growth and widening the funding gap. This trend, driven by robust demand from corporate and retail sectors, has pushed the loan-to-deposit ratio to a decade-high, raising concerns about funding sustainability. While some lenders saw deposits decline, others maintained a balance, reflecting varied strategies amidst intense competition.
