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The SBI Research in latest report has highlighted growth in India's Credit-Deposit (CD) ratio in past 25 years (since 2000-01 to December 2025), which signifies a better financial development and led to strong economic growth. The report noted that the CD ratio has been increasing since 2000-01 from 53% to 82% as of December 15, 2025. The incremental CD ratio numbers crossed 100% in a number of instances, showing the increase in demand for credit, despite lean deposits growth but banks honoured it by raising resources from other sources. Moreover, post the pandemic, the balance sheets of Indian banks have revived with bank asset growth rebounding sharply to 94% of the GDP as compared to 77% in FY21, which reflects renewed credit intermediation and financial deepening. 

Over the two decades, both deposits and advances expanded manifold, with deposits surging from Rs 18.4 lakh crore to Rs 241.5 lakh crore and advances from Rs 11.5 lakh crore to Rs 191.2 lakh crore during FY05 to FY25. Meanwhile, market share of Public Sector Banks’ (PSBs) showed continued revival after a secular decline since FY08, with PSBs gradually reclaiming market share, indicating balance sheet repair and renewed lending appetite. The report noted that CASA stability masked divergent trends across bank groups with private banks strengthening CASA shares, while foreign banks witnessed erosion. 

The report pointed that there is a gap between maturity profile of share of deposits and advances for 6 months to 1 year and 1 to 3-year time bucket and the 35% share of advances in 1-3 years bucket indicating increasing tendency of pre-payment among borrowers. Further, the unsecured advances expanded from Rs 2 lakh crore to Rs 46.9 lakh crore, with share rising to 24.5% in FY25 from 17.7% in FY05. Besides, PSBs accounted for half of the unsecured lending followed by Private Sector Banks. On the asset side, Indian banks assets size has increased from merely Rs 23.6 lakh crore in FY05 to Rs 312.2 lakh crore in FY25.