Banks' borrowings cross ₹9 lakh crore as credit growth outshines deposits

Mumbai's banks saw their borrowings exceed ₹9 lakh crore by July 26, with credit growth outpacing deposit accumulation. As a result, lenders turned to short-term funding methods like interbank repo operations and infrastructure bonds. Despite some improvement in deposit accretion, banks continued to face liquidity shortages, prompting increased market borrowing to meet the rising credit demand.