India's Credit-Deposit Ratio Just Hit 83%. A 15-Year High. Gold Loans Up 4x in Two Years.

Published: April 8, 2026

Loans to NBFCs up 21% in 9 months. Six sectors growing at roughly 2x the overall market rate - together pulling one-third of all new credit.

Credit grew at 12.3%, deposits at 9% the past 9 months...the gap keeps widening.

Meanwhile housing - 16% of total credit, biggest single sector - growth slowed down in the past 9 months.

Analysis cuts in the slides. RBI sectoral data, processed and available on TREMOR site with analysis capability and data downloads.

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India Credit-Deposit Analysis

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Where is India borrowing?

Amar Harolikar

Decision Sciences & Applied AI

Gold loans and loans to NBFCs leading the charge

8th April 2026

tremor.tigzig.com

India Credit – Deposit Ratio at 15 year highs


Data & Tools

Data Sources

Aggregate Deposits & Credit - RBI fortnightly statistical release and Excel downloads from data.rbi.org.in

Sectoral Credit Deployment - RBI SIBC data; monthly returns from 41 banks covering ~95% of non-food credit. Methodology Note

RBI publishes NBFCs (3.9) with sub-items for HFCs (3.9.1) and PFIs (3.9.2) only. The residual - MFIs, gold loan NBFCs, and others - is not disclosed separately. We compute "Other NBFCs" (3.9.3) = NBFCs total - HFCs - PFIs, reconciled to zero gap across all periods

Tool

All data is processed and available on Tremor tool with full data download and analysis capability

TREMOR | Macro Signals (tremor.tigzig.com)


Credit growing faster than Deposits

Jun '25 to Feb '26: Deposits grew 9% (Rs. 230 to 252L Cr) vs. Credit up 12.3% (185 to 208L Cr) - pushing Credit-Deposit ratio to a 15-year high of 83%

Aggregate Credit vs. Deposit Growth (Indexed to 100)

Credit

Deposit

Source: RBI fortnightly disclosure data. Period: 13th June 2025 to 28th February 2026.


Six Sectors Outpacing the Market

Overall credit grew 12.3% (Jun-Feb), adding Rs. 8.14L Cr. Six sectors grew at 2x that rate (24%), contributing nearly one-third of all new credit. Their combined share rose from 18.4% to 20.3% in nine months:

Loans against gold jewellery, NBFCs (MFIs, gold loan, others) & Public Financial Institutions

Micro & Small & Medium enterprises, Wholesale trade


Loans Against Gold Jewellery

The fastest-growing sector. Jun-Feb growth of 54.7% vs. 12.3% for overall credit.

The bigger story is the 2-year trend: outstanding has surged from Rs. 1L Cr to Rs. 4.3L Cr - over 4x - adding Rs. 3.28L Cr to the economy. Share rose from a minuscule 0.6% to ~2% of total bank credit. A scorching pace of growth.


NBFC – MFIs, Gold Loan, Others

Bank lending to NBFCs (excl. HFCs & PFIs) grew 20.8% (Jun-Feb), adding Rs. 2.19L Cr - comprising ~10% of all incremental credit. Share rose from 5.7% to 6.1%.

Many NBFCs themselves report strong gold loan growth, so the total gold loan picture is a combination of this sector + direct bank gold jewellery loans (previous slide).


The Other Fast Movers

The remaining sectors rounding out the high-growth group:

Micro & Small Industries - grew 18.2%, contributed 7% of incremental credit. Share up from 4.7% to 5.0%.

Medium Industries - grew 20.3%, share up from 1.9% to 2.1%.

Wholesale Trade - another sector quietly gaining share alongside the MSME segments.


Housing - The Notable Exception

The single largest sector at 15.9% of total credit - yet growing well below the market. Jun-Feb growth of just 7.8% vs. 12.3% overall.

Market share is steadily eroding - down from 16.6% to 15.9%. As the biggest sector, this drag pulled down the overall credit growth number.


Large Industries and Agriculture

The 2nd and 3rd largest sectors - Large Industries and Agriculture & Allied Activities - together comprise over one-fourth (26.6%) of total credit deployment.

Both grew at a healthy 10.4% - but still below the 12.3% overall average. Combined share drifted from 27.1% to 26.6%. Healthy growth, but comparatively slower - yielding share to the faster movers.


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