India's Banking Boom: CD Ratio Signals Economic Surge

India's Credit-Deposit (CD) ratio has surged from 53% in 2000-01 to 82% in 2025, indicating financial and economic growth. Banks' assets have grown, and public sector banks are reclaiming market share alongside private banks. Job creation has doubled, highlighting a shift towards skilled roles.

India's banking sector is witnessing a robust expansion, as indicated by the consistent rise in the Credit-Deposit (CD) ratio, which reached 82% by December 2025. This trend underscores a significant developmental stride in the nation's financial landscape, accompanied by a reinvigorated economic growth, according to a report issued Monday.

The SBI Research Report highlights a notable trend of incremental CD ratios surpassing 100% in many instances, emphasizing heightened credit demand despite stagnant deposit growth. Banks have adeptly countered this by sourcing additional resources from various channels, reflecting a strong resurgence in post-pandemic balance sheets.

A dramatic increase in deposits from Rs 18.4 lakh crore to Rs 241.5 lakh crore and advances from Rs 11.5 lakh crore to Rs 191.2 lakh crore over two decades marks the scale of expansion, especially with Public Sector Banks reclaiming market share. Job creation within banking saw employees nearly doubling, with skilled officer roles significantly rising to 76%.

(With inputs from agencies.)