At 15.4%, bank deposit growth highest since December 2016: RBI data
India’s banking sector witnessed strong growth in both deposits and lending, supported by the RBI’s special FCNR(B) swap facility.
Banks mobilised $36.7 billion in FCNR(B) deposits by July 31, taking advantage of the RBI scheme that covers the full hedging cost for eligible foreign currency deposits with a 3–5 year maturity.
In FY27 so far, total bank deposits increased by ₹7.13 trillion, compared with ₹7.69 trillion during the same period last year.
Time deposits rose by ₹9.70 trillion, while demand deposits declined by ₹2.58 trillion.
Bank credit growth accelerated to 19.3% year-on-year as of July 31, up from 17.7% two weeks earlier, marking the highest growth since May 2024.
During the fortnight ending July 31, bank credit increased by ₹3.43 trillion to reach ₹220.78 trillion.
So far in FY27, total credit has grown by ₹7.18 trillion, significantly higher than ₹2.57 trillion during the same period last year.
The gap between credit growth and deposit growth narrowed to 3.95 percentage points, improving from 4.98 percentage points a fortnight earlier, indicating a better balance between lending and deposit mobilisation.
