MUMBAI: Total deposits with banks rose to Rs 265.4 lakh crore as on June 30, 2026, with the system recording a sharp fortnightly increase of around Rs 7 lakh crore, or 2.7%, driven by a balanced rise in both demand and term deposits.
The increase over the past two weeks has increased year-on-year deposit growth for Q1FY27 to 13.3%, much higher than the 10.1% growth recorded last year.Despite the rise over the past two weeks, deposit growth continues to lag behind credit growth. Bank credit or advances stood at Rs 219.3 lakh crore as on June 30, 2026, after an increase of Rs 3.8 lakh crore during the fortnight, registering a growth of 1.8%. On an annual basis, credit growth accelerated sharply to 18.6%, double the 9.5% growth recorded in June 2025.
Despite the surge, deposit growth still lags behind credit expansion
The growth in the first three months of 1.2% or Rs 3.1 lakh crore was lower than the fortnightly growth because the previous weeks saw bank deposits shrink from the end-March 2026 levels. Till the fortnight ended June 15, 2026, bank deposits fell by Rs 3.9 lakh crore or -1.5% from the end-March 2026 levels.“With the mobilization of deposits at the end of the quarter, we believe the rise is also due to a potential jump in capital flows due to FCNR(B), ECB and OFCB.
India has also received inflows worth $7 billion from FII since the measures announced by the government to bring in foreign inflows and strengthen the rupee. Cumulative debt under the fully accessible route (FAR) has seen inflows of up to $2.7 billion since then, SBI chief economist Soumya Kanti Ghosh said in a report.According to the report, an educated guess at the size of total capital flows that excludes the growth trend suggests that this number could reach $15 billion.
The frequency of FCNR (B) flows increased.As credit growth continued to outpace deposit growth, banks were slow to make investments that were largely by the second. At the end of the first quarter, banks’ investments amounted to Rs 70.9 million. On an annual basis, investment growth declined to 5.8%, compared to an increase of 8.7% in the previous year.