NEWS
FCNR(B) flows push bank deposits to fastest growth in decade
Bank deposits rise 17.8% YoY, adding Rs 9.4 lakh cr in fortnight ended August to take outstanding to Rs 278.7 lakh crore; credit grows 19.1% and outstanding is at Rs 223.9 lakh cr.
Bank deposits rise 17.8% YoY, adding Rs 9.4 lakh cr in fortnight ended August to take outstanding to Rs 278.7 lakh crore; credit grows 19.1% and outstanding is at Rs 223.9 lakh cr.
Bank deposits rose 17.8% year-on-year at end-August, posting the fastest growth in a decade with the help of a surge in FCNR(B) flows.
The previous highest decadal growth of 15.4% was posted a month ago.
Banks added Rs 9.4 lakh crore of deposits in the fortnight ended 31 August 31, taking the outstanding amount to Rs 278.7 lakh crore.
Bank credit still grew higher at 19.1% year-on-year to take the outstanding amount to Rs 223.9 lakh crore as on 31 August, RBI data showed.
The massive influx of foreign currency non-resident (Bank), or FCNR(B), deposits has helped banks as they were facing challenges to push liability growth in pace with credit growth. Customers in India are increasingly moving towards market-linked instruments rather than bank deposits on lure of earning higher returns.
Under the Reserve Bank of India’s forex swap window, banks mobilised $127.23 billion in FCNR(B) deposits between the period 8 June and 31 August.
