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Indian Banks See 20-Year Boom: Deposits Soar 13-Fold, Loans Up 17 Times

A State Bank of India report highlights two decades of exponential growth in India's banking sector, with deposits multiplying over 13 times and advances surging more than 17 times since FY05. The growth momentum accelerated post-pandemic, with total banking assets rebounding to 94% of GDP by FY25. Public Sector Banks are notably reclaiming their market share in advances after a long period of decline. The report underscores a robust revival in credit intermediation and deeper financial penetration in the economy.

Key Points: 20-Year Banking Boom: Deposits & Loans Skyrocket, SBI Report

  • 13-fold deposit growth since FY05
  • 17-fold surge in bank advances
  • PSBs regain lending market share
  • Banking assets near 94% of GDP
  • Strong post-pandemic balance sheet revival
2 min read

Indian banks see exponential growth in deposits and loans since FY05: SBI Report

SBI report reveals Indian banking's massive growth: deposits hit ₹241.5L Cr, advances ₹191.2L Cr since FY05. PSBs regain market share.

"During FY05 to FY25, Deposits increased from Rs 18.4 lakh crore to Rs 241.5 lakh crore, Advances increase from Rs 11.5 lakh crore to Rs 191.2 lakh crore - SBI Report"

New Delhi, January 12

The banking system in the country has recorded a robust expansion over the last two decades, with total deposits and advances rising sharply, highlighting the growing scale and depth of financial intermediation in the country, according to a report by the State Bank of India.

The report noted that during the period from FY05 to FY25, bank deposits increased significantly from Rs 18.4 lakh crore to Rs 241.5 lakh crore. At the same time, bank advances rose from Rs 11.5 lakh crore to Rs 191.2 lakh crore, reflecting strong credit growth over the years.

It stated, "During FY05 to FY25, Deposits increased from Rs 18.4 lakh crore to Rs 241.5 lakh crore, Advances increase from Rs 11.5 lakh crore to Rs 191.2 lakh crore".

According to the report, the growth momentum in both deposits and advances has picked up further since FY21.

The report highlighted that Indian banks have shown a strong post-pandemic balance sheet revival. Bank asset growth rebounded sharply after FY21, with total banking assets rising from 77 per cent of GDP to 94 per cent of GDP by FY25. This increase reflects renewed credit intermediation and deeper financial penetration in the economy.

The report said this clearly signals a large-scale expansion of the banking system, although advances have grown at a faster pace compared to deposits.

The report also pointed out a continued revival in the market share of Public Sector Banks (PSBs). After witnessing a steady decline in market share since FY08, PSBs are gradually reclaiming their share in advances. This trend indicates improvement in balance sheets and a renewed appetite for lending among public sector banks.

On the deposit side, the report said that overall CASA (Current Account Savings Account) ratios have remained stable at around 37 per cent. However, trends vary across bank groups. Private banks have strengthened their CASA shares, while foreign banks have seen some erosion in their CASA ratios.

Further, the total asset size of Indian banks has grown sharply from Rs 23.6 lakh crore in FY05 to Rs 312.2 lakh crore in FY25. The report added that asset growth, which had slowed to single digits during FY15 to FY21, has rebounded strongly in recent years.

- ANI

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Reader Comments

P
Priya S
Great to see PSBs making a comeback! For a while, it felt like private banks were taking over completely. Public sector banks reaching more rural and semi-urban areas is crucial for true financial inclusion. Hope this revival continues.
R
Rohit P
The numbers are impressive, no doubt. But I have a respectful criticism: are these loans actually reaching the common man and small businesses easily? Sometimes the paperwork and collateral requirements are still a big hurdle. Growth should be inclusive.
S
Sarah B
As someone who moved to India a few years ago, the digital banking transformation here has been incredible. UPI, easy app-based deposits... it's no surprise deposits are growing. The convenience is a major factor.
V
Vikram M
Advances growing faster than deposits is a point to watch. It means banks are lending aggressively. Good for business loans and home loans, but hope the NPA situation remains under control. We don't want another bad loan crisis.
K
Kavya N
My parents never had a bank account until about 10 years ago. Now our whole family, even in the village, uses banking services. This report shows the real success of Jan Dhan and financial literacy drives. Bahut accha hai! 👍

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