The green shoots of growth in credit against lagging deposit growth calls for more proactive liquidity management, according to a report from State Bank of India’s research department. The report highlighted the rising gap between credit growth and deposit growth of the banking system. Credit growth was 11.3% for the fortnight ended October 31, while deposit growth was at 9.7%. The credit growth picked up during the festive season, though it was lagging in the first quarter. The report also noted higher yield on government bond despite 100-bps rate cut. Considering the g-sec supply worth Rs 1 lakh crore each month till February 2026 and larger state bond issuances, yields will move in range, the report said. With the cancellation of auction of seven-year government bonds earlier this month, the RBI clearly indicates that it is not comfortable with higher yields.