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Informist, Friday, Sept. 11, 2026

 

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--RBI: Banks' non-food loans Aug 31 up INR 3.82 tln on fortnight 
--RBI: Banks' loans as on Aug 31 up INR 3.80 tln on fortnight
--RBI: Banks' loans as on Aug 31 INR 223.88 tln, up 19.1% YoY 
--CONTEXT: Banks' loans were up 18.3% on year as on Aug 15 
--RBI: Banks' deposits as on Aug 31 up INR 9.40 tln on fortnight 
--RBI: Banks' deposits as on Aug 31 INR 278.72 tln, up 17.8% YoY
--CONTEXT: Banks' deposits were up 14.7% YoY as on Aug 15 

 

MUMBAI – India's bank deposits rose 17.8% on year as on Aug. 31 from 14.7% as on Aug. 15, reaching the fastest pace of growth in at least five years, data released by the central bank Friday showed. The multi-year-high growth was likely on account of inflows through foreign currency non-resident (banks) deposits under the Reserve Bank of India's special foreign exchange swap window.

 

Deposits grew by INR 9.40 trillion to INR 278.72 trillion as on Aug. 31, the biggest fortnightly jump since the seasonal spike in the second half of March. Banks' deposits had declined by INR 65.34 billion in the first half of August.

 

The RBI had in June announced special measures to attract foreign capital inflows to strengthen the rupee, including a facility to cover the full hedging cost for banks raising fresh three-to-five-year FCNR(B) deposits. Banks mobilised $127.23 billion through FCNR(B) deposits between Jun. 8 and Aug. 31, much higher than initial expectations. The robust response under the special scheme led the RBI in mid-August to advance the closure of the special scheme on Aug. 31 rather than Sept. 30 as originally announced. This led to a bunching up of inflows, with FCNR(B) data showing almost half the total collections over nearly three months came between Aug. 13 and Aug. 31.

 

Meanwhile, banks' loan growth also accelerated to 19.1% on year as on Aug. 31 from 18.3% in the preceding fortnight. In absolute terms, loans grew by INR 3.80 trillion in the latest fortnightly data. The growth was in contrast to the fall in loans worth INR 706.39 billion recorded by scheduled commercial banks in the first half of August. Non-food credit rose by INR 3.82 trillion in the fortnight to Aug. 31 to INR 222.76 trillion.

 

The quicker rise in deposits under the FCNR(B) scheme has pulled down banks' credit-to-deposit ratio from a record high above 83% in mid-June, which suggested tight funding conditions for banks. On Aug. 31, the credit-to-deposit ratio stood at 80.32%, the lowest since October-end.  End

 

US$1 = INR 95.5500

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

 

Reported by Nandini Sinha

Edited by Rajeev Pai

 

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