A Study on Credit and Deposit Performance of Scheduled Commercial Banks in India

A comprehensive examination of the credit and deposit performance of India's Scheduled Commercial Banks reveals recent trends, including a slowdown in credit growth and steady deposit growth as of August 2025, a high and rising credit-deposit ratio noted in 2024, significant regional disparities, and differing impacts of factors such as the COVID-19 pandemic. Such studies are crucial for evaluating financial stability, resource mobilization for economic development, and the effectiveness of banks in meeting borrower credit needs, often requiring a thorough analysis of trends across states, banking institutions, and time periods. Financial institutions are integral to every economy. Banks act as the catalyst for all economic activities. The principal functions of banks are to collect deposits and to provide loans for economic advancement. The mobilization of deposits by banks depends on depositors' trust in the institutions and the yields they offer. The greater the mobilization of deposits, the increased lending ability of the banks will be. This article analyzes several attributes of loans and deposits of Indian scheduled commercial banks throughout time. The analysis reveals that, on a nationwide scale, banks are extending a significant portion of the deposits they have gathered. The credit deposit ratio is shown an increasing trend, indicating the ongoing growth and financial stability of scheduled commercial banks in India.