Indian banks see strong Q2 deposit surge boosted by FCNR(B) inflows

Provisional data show that Indian banks experienced notable deposit expansion in Q2FY27, driven by FCNR(B) mobilisation through the RBI’s concessional swap window that ended on August 31, contributing about $133 billion system-wide. Bank of Baroda saw domestic deposits climb 17% YoY to ₹14.88 trillion and advances grow 13.5% to ₹11.87 trillion, with $8 billion raised via the swap window. Bank of India posted a 21.6% YoY deposit increase and a 20.4% rise in advances, mobilising roughly $2.4 billion.

Punjab National Bank recorded its strongest four-quarter deposit growth at 9.9% YoY, while Yes Bank’s deposits rose 19.5% YoY to ₹3.54 trillion. AU Small Finance Bank, on its path to becoming a universal bank, achieved a 28.6% YoY deposit surge to ₹1.70 trillion. System-wide, RBI data indicate credit growth of 18.1% YoY and deposit growth of 17.3% YoY as of mid-September.