Last Updated on July 1, 2026 12:11 am by BIZNAMA NEWS
Our Banking Correspondent
Amid fluctuating systemic liquidity, bank credit in India edged marginally higher while aggregate deposits recorded a slight sequential contraction during the fortnight ended June 15, according to the scheduled banks’ statement of position released by the Reserve Bank of India (RBI) today.
Credit Expansion Holds Steady YoY
The central bank’s latest fortnightly data revealed that outstanding aggregate bank credit across all scheduled commercial banks moved up to ₹220.59 lakh crore as of June 15, up from ₹220.26 lakh crore reported on May 31. On a year-on-year (YoY) basis, loan books expanded by a robust 17.4% from the ₹187.84 lakh crore baseline recorded in the corresponding period last year.
Sequential Dip in Deposits; Term Deposits Dominate
In contrast to credit growth, banking system deposits (excluding inter-bank deposits) experienced minor sequential contraction. Total deposits pulled back to ₹263.86 lakh crore, down from ₹265.39 lakh crore a fortnight ago. Despite the short-term dip, the banking sector maintained a healthy annual growth trajectory, with aggregate deposits jumping nearly 12% YoY from ₹235.62 lakh crore a year ago.
Bank Balance Sheet Snapshot (As of June 15)
| Metric | Current Fortnight (₹ Lakh Cr) | Previous Fortnight (₹ Lakh Cr) | YoY Growth (%) |
| Aggregate Credit | 220.59 | 220.26 | +17.4% |
| Total Deposits | 263.86 | 265.39 | +12.0% |
| Securities Investment | 72.52 | 72.17 | — |
Composition Analysis: Fixed-horizon term allocations continue to anchor banking resources. Time deposits accounted for the lion’s share of the pool, standing at ₹231.36 lakh crore during the reporting fortnight.
Government Securities Allocation Rises; Liquidity Stress Eases
With credit off-take moving at a measured pace, commercial banks increased their statutory and surplus allocations toward financial markets. Banks’ cumulative investment in securities rose to ₹72.52 lakh crore, compared to ₹72.17 lakh crore at May-end. The bulk of this capital remained deployed in central and state government sovereign securities.
Signaling a substantial improvement in domestic liquidity conditions and a lower reliance on the central bank’s marginal standing or repo windows, commercial bank borrowings from the RBI crashed to ₹32,882 crore as of June 15—down significantly from the ₹92,900 crore tapped during the previous fortnight.