New Delhi: Deposit growth at banks is expected to be adequate in FY26, facilitating credit growth of 11–12 per cent buoyed by enhanced liquidity from regulatory measures, a report said on Friday.

The report from ratings agency Crisil noted that decreasing household participation in term deposits and a reduction in current account and savings account (CASA) ratio indicate structural changes that may increase funding costs over the medium to long term.

The Reserve Bank of India (RBI) has injected liquidity since April 2025, improving conditions from the tight liquidity situation.

A 100-basis-point reduction in the cash reserve ratio is injecting approximately Rs 2.5 lakh crore into the system, and revised liquidity coverage ratio regulations could release an additional Rs 1.9 lakh crore,

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