How do you read Deposit growth?

It should keep pace with loan growth. Loans growing much faster than deposits means the bank is leaning on costlier borrowing. On the scale used here, below 8% reads as lagging, 8% to 15% reads as keeping pace, and 15% and above reads as strong. Higher is usually better.

Deposit growth: what it means and how to read it

What is Deposit growth?

How much a bank's deposits grew over the latest fiscal year.

A bank lends out most of what it gathers in deposits. The ratio of loans to deposits, the credit-deposit ratio, shows how stretched it is: in the high 70s and low 80s percent is comfortable, and above 90% the bank has little room and must borrow in the market or slow its lending.

How the deposits are won matters too. Growth bought by offering the highest fixed deposit rates raises the cost of funds; growth in current and savings balances lowers it.

How it is calculated

Deposit growth = (deposits at the end of this year ÷ deposits at the end of last year) − 1, as a percentage.

A worked example

Deposits of ₹2,24,000 Cr against ₹2,00,000 Cr a year earlier: deposit growth = 12%.

Why does Deposit growth matter?

Deposits are the cheapest, steadiest money a bank can lend. A bank cannot grow its loans for long without growing them.

What is a good Deposit growth?

It should keep pace with loan growth. Loans growing much faster than deposits means the bank is leaning on costlier borrowing.

Deposit growth at or above loan growth, with the CASA ratio holding steady, is the healthy pattern. The figure applies to banks; most NBFCs fund themselves with borrowings rather than deposits.

Reading scale

In %

Lagging

Keeping pace

Strong

0%8%15%25%+

On the scale used here, below 8% reads as lagging, 8% to 15% reads as keeping pace, and 15% and above reads as strong.

Higher is usually better.

What are the common mistakes with Deposit growth?

Reading it without loan growth beside it.

Ignoring the price paid for the deposits.

What is a typical Deposit growth in India today?

The median across the 55 listed companies that report it, as of 12 Oct 2026. Half sit above each figure and half below.

By company size

Median

Large Cap · 14 companies11.7%

Mid Cap · 13 companies13.6%

Small Cap · 28 companies14.8%

By industry

Median, largest industries first

Private Sector Bank · 2014.1%

Public Sector Bank · 1212.1%

Other Bank · 921.4%

Compare a company with its own industry before the whole market. Every industry, and each company's rank within it, is in the screener.

Is this lender sound, and does it earn enough for the risk it takes?

A bank's raw material is other people's money, so the ratios that judge a factory misread it. These are the figures that matter for banks, NBFCs and housing finance companies: what they earn on lending, how many loans have gone bad, how well they are cushioned against losses, and how cheaply they fund themselves.