Bank lending and deposit growth in India has slowed significantly. As of November 15, 2024, loan growth stood at 11.1%, a sharp decline from 20.6% the previous year. Total bank deposits rose 6.7% since March to Rs 218.5 lakh crore, with Rs 13.8 lakh crore added between April and November 15, compared to Rs 16.1 lakh crore in the same period last year. Total loans reached Rs 173.6 lakh crore, with Rs 9.3 lakh crore in new loans added during the current fiscal year, significantly lower than the Rs 19.5 lakh crore added in the same period last year.

Slower deposit growth relative to loan growth has prompted banks to sell government bonds, reducing RBI-held government securities by Rs 67,431 crore to Rs 64.4 lakh crore in the two weeks leading to November 15.

Loan growth across categories has also slowed. Mortgage growth dropped from 18% to 12%, auto loans fell from 20% to 11%, and unsecured loan growth declined from over 25% last year to 11%. Retail lending, a key driver of bank credit, also decelerated from 16.3% in March 2024 to 12.9% in October. Bank loans to non-bank financial institutions contracted by 0.7% to Rs 1.5 lakh crore in the first seven months of the fiscal year.