New Delhi, July 20 -- Bank credit growth is expected to remain robust despite a persistent gap between credit and deposit growth, with Indian banks entering a "goldilocks period" supported by strong capital buffers and low non-performing assets, according to a report by SBI Research.

The report noted that the banking system has witnessed sustained expansion in credit since FY23, with scheduled commercial banks' credit growing 18.6 per cent for the fortnight ended June 30, 2026, while deposit growth stood at 13.3 per cent.

"Banking system has experienced persistent and rapid expansion in bank credit with a growth of 18.6% for the fortnight ended 30 June'26... Since FY23, credit growth has consistently surpassed the deposits growth, which...