RBI Bulletin – September 2026
Today, the Reserve Bank released the September 2026 issue of its monthly Bulletin. The Bulletin includes seven speeches, three articles and current statistics. The three articles are: I. State of the Economy; II. Credit-Deposit Divergence: A Balance Sheet Decomposition; and III. Private Corporate Investment: Growth in 2025-26 and Outlook for 2026-27. I. State of the Economy With geopolitical…
The Reserve Bank released the September 2026 Bulletin, containing speeches, articles, and statistics. The articles covered the state of the economy, credit-deposit divergence, and private corporate investment.
The global economy faced rising energy prices due to geopolitical tensions in West Asia. Despite this, India's economy grew by 7.8% in Q1:2026-27, demonstrating resilience. The merchandise trade deficit narrowed, and headline inflation rose to 4.8% in August, mainly due to food and fuel prices. System liquidity increased, and foreign exchange reserves hit an all-time high.
Bank credit growth outpaced deposits growth since FY2023, pushing the credit-deposit ratio above 80%. The article examined factors contributing to this ratio, highlighting that deposits may not be a constraint for credit creation. Banks decide to extend credit based on profitability, within the regulatory framework. The high CD ratio was due to liability side adjustments and changes in asset composition.
Private corporate investment played a significant role in economic growth. Investment activities increased in 2025-26 compared to the previous year, with the infrastructure sector attracting major share of the envisaged capital investment. The aggregate capex intended by private corporates in 2025-27 was estimated at ₹3.2 lakh crore.
Written by urgent.news from Reserve Bank of India's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
