Credit growth at scheduled commercial banks accelerated from 9.9% a year earlier, with lending expanding across several borrower groups. Private companies recorded a 21.1% increase, while household borrowing rose 15.2% and public-sector lending grew 14.6%. Credit to female borrowers increased 19.7%.

Lending to trade businesses expanded 18.1%, while finance-sector credit rose 22.4%. Borrowing costs also eased: the weighted average lending rate fell from 9.71% a year earlier to 9.26%. Nearly two-thirds of outstanding bank loans carried rates below 9%, although the figures alone do not establish what drove the faster credit growth.

Households accounted for 58.8% of deposits and supplied almost 99% of the additional deposits received during the quarter. Rural and semi-urban branches posted faster deposit growth than the banking system overall, highlighting their contribution to banks’ funding base.

Fixed deposits grew 12.9%, compared with 10.6% for savings accounts and 5.3% for current accounts. Around 70% of customers favoured FD tenures between one and three years. Meanwhile, 66.7% of term deposits earned below 7%. Deposits worth at least ₹1 crore represented 47.3% of term deposits, with those worth ₹5 crore or more accounting for 35.7%.