Deposit growth rose from 10.1% to 13.3%, but the gap between credit and deposit growth widened to 5.3 percentage points, creating funding challenges for banks. In the first quarter of 2026-27, bank credit increased by about 5.6 lakh crore, while deposits rose by 3.09 lakh crore. Financial resources to the commercial sector from April to May reached 2.82 lakh crore, nearly eight times the previous year, reflecting strong demand for funds. Industry and personal loans accounted for 75% of the incremental credit growth, driven mainly by infrastructure sectors like power and chemicals. Meanwhile, the share of financial institutions in bank deposits rose by 2.6 percentage points from 2021-22 to 2025-26, while non-financial entities increased by 1.5 percentage points.