MUMBAI: Banks concluded the first half of FY27 with an acceleration in balance-sheet expansion, as year-on-year credit growth climbed to 19.4% and aggregate deposit growth reached 17.8%, leaving the credit-to-deposit ratio at 81%.Total bank credit stood at over Rs 229.9 lakh crore as of Sept 30, while aggregate deposits reached about Rs 284 lakh crore. Many large banks that have submitted their business figures to the exchanges have attributed the increase to the $133 billion mobilised under the FCNR(B) scheme.The year-on-year deposit growth at the end of the first quarter (June 30 2026) was 13.3% while the growth in advances was 18.6% A year earlier, at the end of Sept 2025, bank credit growth stood at 11.4%, while aggregate deposits grew 9.9%. Time deposits were the primary driver of deposit accretion, contributing Rs 36.3 lakh crore, or 84.5% of total annual deposit growth, to reach Rs 246.6 lakh crore.This represented annual growth of 17.3%, compared with 8.8% a year earlier. Demand deposits rose 21.6%, or Rs 6.6 lakh crore, year-on-year to Rs 37.4 lakh crore, up from growth of 18.5% a year earlier.With credit growth outstripping deposit growth, banks are facing tighter resource constraints, with the credit-to-deposit ratio remaining above 80%. During the fortnight ended Sept 30, 2026, credit expansion lifted the credit-to-deposit ratio to 81%. From 78.9% at the end of Sept 2024, the ratio rose to 80.8% in March 2025. By Sept 30, 2025, deposit inflows had brought it down to 79.9%. Lending accelerated in the second half of FY26, and the ratio reached an interim peak of 81.4% on March 31, 2026.