Credit growth is expected to continue outpacing deposit mobilisation in the current financial year and the next, prompting banks to bridge the funding gap through increased issuance of certificate of deposits, analysts at India Ratings said. The pace of rise in bank profitability is likely to bottom out this fiscal year, and gradually improve in FY27 as funding pressures ease and net interest margins (NIMs) stabilise, the agency said in its outlook on the financial sector for FY27. The rating agency expects advances growth to remain at 13% for FY27, unchanged from FY26. That would outpace deposit growth, which is expected at 11.4% in FY27, from 10.7% in FY 26. The loan to deposit ratio is expected to rise to 83.2% in FY27 from 81.9% in FY 26 and 80.3% in FY25, potentially constraining incremental growth.