Bank credit against fixed deposits, including FCNR(B) and NRNR deposits, rose 43.2 per cent year-on-year to ₹2.04 lakh crore as of August 31, 2026, according to RBI data. Such advances stood at ₹1.43 lakh crore a year earlier, representing a significant increase in lending against customer deposits. On a financial-year basis, advances increased 20.8 per cent from ₹1.69 lakh crore as of March 31, 2026. This sharp rise in advances against fixed deposits came even as overall bank credit expanded 19.1 per cent year-on-year to ₹223.88 lakh crore as of August 31, from ₹188.01 lakh crore a year earlier.
According to RBI data reported by authorised dealer banks till September 18, total inflows from FCNR(B), ECBs and OFCBs stood at USD 143.596 billion. FCNR(B) deposits accounted for USD 132.980 billion, OFCBs contributed USD 5.320 billion, and ECBs amounted to USD 5.296 billion. As of August 31, banks have mobilised USD 133 billion through the special Foreign Currency Non-Resident (FCNR-B) deposit scheme. The RBI's special USD-INR forex swap facility for FCNR(B) deposits, Overseas Foreign Currency Borrowings (OFCB) and External Commercial Borrowings (ECBs) was launched on June 8, 2026 and was open till August 31 for FCNR(B) deposits, with the scheme continuing until December 31, 2026 for ECBs and OFCBs.
Public and private sector banks reported robust performance in Q2FY27, with Bank of Baroda achieving 17 per cent year-on-year growth in domestic deposits to ₹14.88 trillion and advances growing 13.5 per cent to ₹11.87 trillion. The bank mobilised around $8 billion under the RBI's concessional swap window. Bank of India reported 21.6 per cent YoY growth in deposits and 20.4 per cent rise in advances, with the credit-deposit ratio standing at 82.3 per cent. Punjab National Bank recorded 9.9 per cent YoY growth in deposits, its strongest in four quarters, while advances grew 14.8 per cent, the highest in six quarters. Yes Bank reported 23.8 per cent YoY growth in loans and advances to ₹3.10 trillion, with deposits growing 19.5 per cent to ₹3.54 trillion. HDFC Bank said its average advances under management stood at ₹31.87 lakh crore in the September 2026 quarter, up around 14% from ₹27.95 lakh crore in the corresponding quarter last year.
According to RBI's latest data, scheduled commercial banks' non-food bank credit grew 18.8 per cent year-on-year in August 2026, driven by robust growth across all four sectors. The services sector recorded the fastest pace of credit growth at 24.3 per cent year-on-year, supported by strong performance in non-banking financial companies, trade, professional services and commercial real estate. Farm credit registered 17.2 per cent growth compared to 7.6 per cent in the previous year, while personal loans segment recorded 16.9 per cent growth versus 11.9 per cent a year ago. The RBI noted that while credit to large and medium industries grew at an accelerated pace, micro and small industries sustained steady expansion.
Latest RBI data shows credit growth in the system stood at 18.1 per cent YoY as of September 15, while deposit growth reached 17.3 per cent. In the financial year so far, while credit has grown by 4.5 per cent, deposits during the same period have grown by 5.3 per cent. The strong performance across major banks, supported by FCNR(B) mobilisation and robust credit growth, indicates continued momentum in the banking sector. Banks' ability to mobilise significant foreign currency deposits under the RBI's concessional swap facility has provided a substantial boost to both deposit growth and overall credit expansion.
