New Delhi [India], September 22 : Bank credit growth accelerated to 19 per cent year-on-year as of August 31, while deposit growth also picked up to 18 per cent, signalling continued momentum in bank lending, Jefferies said in its India Financial Daily report.
Jefferies said the latest data showed bank loan growth continuing to strengthen, with loan and investment growth together at 16 per cent, compared with 18 per cent deposit growth. The credit-to-deposit ratio stood at around 80 per cent, while the investment-to-deposit ratio was around 26 per cent.

The report said bank credit growth has surged in recent months, with private banks retaining their share, while the pace of growth could moderate ahead.
The improvement in credit growth has been visible over recent months. According to Jefferies' chart on bank credit trends, growth had slowed through much of 2024 and early 2025 before recovering from the middle of 2025 and reaching 19 per cent by August 2026.
At the same time, deposit growth has also picked up, reaching 18 per cent by August 31. Jefferies' data showed the gap between loan growth and deposit growth narrowing as deposit mobilisation strengthened, reducing some of the pressure created by faster credit expansion.
The report also highlighted improving liquidity conditions. Banking system surplus liquidity stood at around Rs 5 trillion as of September 21, according to Jefferies' data.
The report noted that the stronger credit trend is being seen alongside developments in the broader financial system, including recent foreign-currency deposit mobilisation and changes in funding conditions.
Further, Jefferies said slight moderation in credit growth could emerge even as lending remains supported by improving momentum. The evolution of deposit growth, credit demand and system liquidity will therefore remain important indicators of how banks' balance sheets develop in the coming months.