MUMBAI: India's banking system deposits are gaining pace and have witnessed a jump over the last three fortnights to a record high, central bank data show, mainly supported by dollar inflows into banks from the Reserve Bank of India's foreign-currency non-resident scheme, traders said.Here are a few details:Banking system deposits jumped by an aggregate of 11 trillion rupees ($115.25 billion) in three fortnights to July 31, RBI data showsAlso Read: RBI's FCNR(B) scheme attracts $41 billion, Jefferies says inflows may double to $80-100 billionDeposits had witnessed a net reduction of 3.87 trillion rupees from April 1 to June 15In June, RBI announced discounted swap windows to attract NRI deposits and encouraged lenders and state-run companies to raise cheaper dollar fundingThe schemes witnessed inflows worth almost $41 billion by the end of July, as per RBI data"The conversion of dollars into rupees has gained pace, which is the major reason for the recent boost in deposits," trader with a state-run bank saysOverall deposits in the banking system stand at a record 269.4 trillion rupees, up by 7.1 trillion rupees in first four months of the fiscal year starting AprilLooking ahead, it is likely that credit conditions would stay strong as skewness in credit-deposit ratio for banks corrects via pickup in deposit growth led by FCNR flows, ICICI Securities Primary Dealership says.
Indian bank deposits jump by $115 billion over three fortnights to record high
Indian banking system deposits have reached a record high after recent significant growth. This surge is primarily supported by dollar inflows into banks from a central bank scheme. The Reserve Bank of India's foreign-currency non-resident scheme attracted substantial foreign currency deposits. These inflows have helped boost overall banking system deposits to a new record level. Credit conditions are expected to remain strong as deposit growth continues.
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