Financial deepening in India In the Indian case, healthy growth of the assets of commercial banks in the recent period, driven primarily by credit growth and sharp rise in credit-GDP, deposit-GDP and M3-GDP ratios are reflective of significant financial deepening in India.
For example, during the period since 1980s, while bank assets-GDP ratio has tripled moving up from 31.4 per cent in the 1980s to 93.3 per cent in 2008-09, credit-GDP ratio has increased from 19.3 per cent to 52.2 per cent, deposits-GDP ratio has increased from 29.8 per cent to 72.0 per cent and M3-GDP ratio has increased from 39.0 per cent to 89.5 per cent (Statistical Annex SA 1).