Now Reading: NRI dollar inflows push bank deposits to decade-high growth
-
01
NRI dollar inflows push bank deposits to decade-high growth
Bank deposits grew 15.4% year-on-year by end-July, the fastest in nearly a decade, as overseas Indians parked about $37 billion in foreign currency deposits through a special RBI window. FCNR-B deposits alone…
The Story in Brief
Bank deposits grew 15.4% year-on-year by end-July, the fastest in nearly a decade, as overseas Indians parked about $37 billion in foreign currency deposits through a special RBI window. FCNR-B deposits alone brought in $36.72 billion, exceeding the $26 billion raised in a similar 2013 scheme. The window closes on September 30, 2026.
Outstanding deposits hit Rs 269.4 lakh crore, while bank credit growth accelerated to 19.4%, the fastest since June 2024. Separately, HDFC Bank, Kotak Mahindra Bank, Yes Bank, Federal Bank and RBL Bank plan to raise up to $3 billion via dollar bonds or loans, using RBI's swap facility to lower hedging costs.
The Indian Opinion
The hype around NRI inflows and bank fundraising misses the real test: will the rupee hold once the swap facility expires? Banks are borrowing dollars cheaply today, but currency and refinancing risks loom. Meanwhile, the RBI's push to attract deposits masks a deeper problem, savers abandoning banks for market products. Watch if deposit growth stays above 15% after September, or if this is just a temporary window dance.
Sources (2): economictimes.indiatimes.com, timesnownews.com
This story was synthesised by AI from the 2 sources linked above.
Updated: this story now draws on 2 sources.
