CareEdge Ratings Reports 12.2% Credit Growth, Credit-Deposit Ratio Hits 82.7% in Q3FY26

CareEdge Ratings has released its latest analysis on the Quarterly Credit Deposit Update for Q3FY26. The report outlines trends in credit growth, deposit expansion, and regional performance across Scheduled Commercial Banks.

According to CareEdge Ratings, Scheduled Commercial Banks recorded a credit offtake growth of 12.2% year-on-year in Q3FY26. Outstanding credit increased by Rs 21.5 lakh crore over the past 12 months.

The data indicates that public sector banks continued to outperform private sector banks in credit offtake over the trailing 12-month period. Regionally, the Central region maintained stronger performance compared to other regions, while the rural segment registered the fastest growth rate at 15.2%.

In December 2025, there was a notable shift in loan distribution toward lower interest rate categories. The 7–8% interest rate bracket expanded by 105% year-on-year during the period.

On the deposit side, term deposits grew by 11.0% year-on-year, while CASA deposits recorded a growth of 8.8% year-on-year in Q3FY26. Among regions, the rural segment reported the highest growth in deposits at 12.4%.

The credit-to-deposit ratio rose by approximately 150 basis points year-on-year, reaching 82.7% by the end of December 2025, marking a historic peak.

Read Full Report Here: https://tvc.s3.ap-south-1.amazonaws.com/Gap_in_Credit_Offtake_and_Deposit_Growth_Widens_in_Q3FY26%20(1)-1.pdf