New Delhi, Sept. 27 -- India's rising credit-deposit ratio does not, by itself, indicate a funding constraint or vulnerability in the banking system, with the Reserve Bank of India's finding in its latest bulletin that banks remain well-capitalised and liquid even as credit growth continues to outpace deposits.

RBI in its report said the credit-deposit ratio of scheduled commercial banks rose from 68.6 per cent in September 2021 to 82.2 per cent in March 2026. The incremental credit-deposit ratio had peaked at around 114 per cent in May 2026 before declining thereafter.

The analysis said the ratio needs to be viewed alongside the broader balance sheet of banks rather than as a standalone indicator of funding stress.

According to the re...