Bank credit growth continued to outpace deposit mobilisation this financial year, tightening system liquidity even as lenders step up loan disbursements. By Jan-end 2026, the incremental credit-deposit (CD) ratio had climbed to 96.9%, sharply higher than the outstanding CD ratio of 82.3%, indicating that banks lent out nearly Rs 97 for every Rs 100 of fresh deposits raised during the year. Data from the Reserve Bank of India showed aggregate deposits grew 10.2% in the financial year to Jan 31, with banks adding Rs 23 lakh crore. Credit expanded faster, rising 12.2% or Rs 22.3 lakh crore over the same period. In the year-ago period, deposits had grown 8.1% and credit 8.7%.