Indian Banks Raise Credit-Deposit Ratio Amid Record Short-Term Borrowings, Liquidity Monitored

Banks in India have increased lending relative to deposits, pushing the credit-deposit (CD) ratio to a record 82.5 as of mid-February 2026. To support loan growth amid slower deposit mobilization, banks issued a historic volume of short-term certificates of deposit (CDs), reaching Rs 1.34 lakh crore in two weeks. Analysts warn that upcoming maturities of these CDs in the March quarter may pressure liquidity buffers, though banks currently maintain liquidity coverage ratios above regulatory minimums, providing some cushion against short-term stress.