New Delhi, January 12 (IANS). Between FY 2015 and FY 2025, the amount of deposits and loans in Indian banks has almost tripled. This makes it clear that the country’s banking system has become stronger and the process of lending has increased again. This has been said in the SBI Research report released on Monday.
The research report of State Bank of India states that during the financial year 2015 to 2025, the amount of deposits in banks increased from Rs 85.3 lakh crore to Rs 241.5 lakh crore. At the same time, the loan given by banks increased from Rs 67.4 lakh crore to Rs 191.2 lakh crore.
The report also said that the total assets of banks have increased to 94 percent of the country’s GDP, which was earlier 77 percent. This shows that the country’s financial condition and banking system has strengthened.
According to the report, in many states of the country, now families are not only saving but have also started turning towards investment. In states like Gujarat, West Bengal, Madhya Pradesh, Andhra Pradesh and Karnataka, a part of bank deposits are increasingly going towards the stock market and other financial markets.
Talking about the long term, between the financial year 2005 and 2025, the amount deposited in banks increased from Rs 18.4 lakh crore to Rs 241.5 lakh crore. Similarly, the debt of banks increased from Rs 11.5 lakh crore to Rs 191.2 lakh crore. It is clear from this that the size of the banking system has increased significantly.
However, the report said that the pace of lending has been faster than that of deposits, due to which the loan to deposit ratio increased from 69 percent in FY 2021 to 79 percent in FY 2025.
According to the report, government banks have also gradually started giving more loans again. Their share had reduced in the first few years, but now their financial condition is improving and they are ready to give more loans.
In the first half of FY 2026, new deposits in banks declined from Rs 8.6 lakh crore to Rs 8.1 lakh crore, while loans increased to Rs 7.6 lakh crore during this period.
Another report states that interest income, profit from government bonds and loans given to retail and small businessmen have played an important role in the increase in the profits of public sector banks.
The report estimates that banks’ profits will improve further in the second half of financial year 2026. Banks will benefit from increased demand during the festive season, pick-up in credit, benefits from lower cash reserve ratio (CRR) requirement and gradual normalization of default cases in the unsecured and MFI segments.
–IANS
DBP/AS