This study investigates the impact of mobile banking on liquidity and credit risk of banks. Based on the analysis of 39 Indian scheduled commercial banks (SCBs) from 2011-2023, we find that mobile banking plays a significant role in enhancing liquidity and reducing banks' credit risk. Additionally, heterogeneity analysis based on bank size, term deposits, profitability, and loans and advances suggest that mobile banking significantly enhances liquidity, particularly for small banks, banks with higher term deposits, higher profitability and lower loans and advances. Interestingly, increased mobile banking significantly reduces credit risk, particularly for small banks, banks with lower loans and advances and higher profitability. These insights can guide policymakers in formulating targeted, differentiated strategies to support mobile banking across diverse enterprise contexts.