Stories
Private Banks Outpace PSU Peers in Deposit Mobilisation in Q2
N
News18•05-10-2026, 20:00
Private Banks Outpace PSU Peers in Deposit Mobilisation in Q2
- •Private banks recorded a deposit growth of 17 per cent to 34 per cent year-on-year in the second quarter of FY27, outperforming state-owned lenders which grew between 6.87 per cent and 17.01 per cent.
- •The strong deposit mobilisation was largely driven by higher Foreign Currency Non-Resident Bank deposit inflows under the Reserve Bank of India's concessional swap window.
- •Banks successfully mobilised USD 133 billion through the special FCNR-B deposit scheme by August 31, accounting for 4.5 per cent of system deposits.
- •State-run banks' advances grew between 12.59 per cent and 29.83 per cent, while private banks saw a loan growth ranging from 16.3 per cent to 40 per cent during the same period.
- •Net interest margins for private banks may face short-term adverse impacts from rapid business growth linked to FCNR-B inflows, but are expected to improve as funds are deployed for lending.
Key Questions Answered
Deposit mobilisation by private banks ranged between 17 per cent and 34 per cent year-on-year in the second quarter of FY27, easily outpacing state-owned lenders whose growth rose between 6.87 per cent and 17.01 per cent.
System deposit growth picked up to 17 per cent year-on-year backed by strong FCNR(B) inflows totaling USD 133 billion as of August 31, which accounted for 4.5 per cent of total system deposits.
The Reserve Bank of India’s special USD-INR forex swap facility will remain open until December 31, 2026, for External Commercial Borrowings and Overseas Foreign Currency Borrowings.
