New Delhi, Sept. 19 -- Bank credit growth accelerated to an eight-quarter high of 16.5 per cent in the first quarter of FY27, but deposits grew at a much slower 11.3 per cent, widening the credit-deposit gap and increasing funding pressure on banks, CareEdge Ratings said in a report.

Credit outstanding rose to Rs 213.6 lakh crore as of June 30, 2026, while deposits stood at Rs 256.5 lakh crore. The 512-basis-point gap between credit and deposit growth was the widest in eight quarters, pushing the system's loan-to-deposit ratio (LDR) to a record 83.3 per cent.

The report said the latest LDR high is significant because it was recorded in June, when seasonal factors typically do not push the ratio higher. This suggests the elevated level r...