In the fiscal year 2026 (FY26), bank credit in India experienced a significant surge, expanding by 16.08% year-on-year, marking the fastest growth since FY24. This increase brought total banking credit to ₹213.61 trillion. Meanwhile, deposits grew by 13.47%, amounting to ₹262.30 trillion. The Reserve Bank of India's (RBI) latest data indicates a notable uptick in credit, particularly in the corporate and micro, small, and medium enterprises (MSME) sectors. The March 31 fortnight alone saw credit growth of 2.8%, or ₹5.92 trillion, compared to a mere 0.1% growth in the previous fortnight. Despite these impressive figures, experts caution that the growth may be inflated due to recent changes in reporting dates, which have shifted to the 15th and month-end from alternate Fridays. This shift could distort the actual growth figures. Major banks, including State Bank of India (SBI), HDFC Bank, and ICICI Bank, have reported robust growth in their portfolios, driven by a return to bank lending as interest rates have softened and bond market yields remain high. However, experts emphasize that for banks to maintain this pace of credit expansion, aggressive deposit mobilization will be essential. Projections for FY27 suggest a credit growth of approximately 13%–14.5%, while deposit growth is expected to lag behind at about 11%–12%.