Banking system deposits jumped by around Rs 7 lakh crore during the fortnight ended June 30, 2026, marking the third-highest fortnightly growth in 29 years, according to a report by SBI Research.
The report said overall deposits rose by Rs 6.97 lakh crore during the fortnight. It attributed around Rs 3.5 lakh crore to Rs 4 lakh crore of the increase to quarter-end deposit mobilisation, while adding that the remaining surge was also on account of a potential jump in capital flows through FCNR(B), ECB and OFCB.
SBI Research said India has received $7 billion in FII inflows since the measures announced by the Government to bring foreign inflows and boost the rupee. It added that cumulative Debt FAR inflows have amounted to $2.7 billion during the period.
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According to the report, an informed estimate after stripping out trend growth indicates that the magnitude of overall capital flows could be around $15 billion, with FCNR(B) flows picking up pace. Separately, the Reserve Bank of India's foreign currency reserves increased by $4.4 billion during the fortnight, indicating the central bank's desire to recoup foreign exchange reserves.
The report also noted that commercial paper (CP) issuances and incremental bank credit expanded in the first quarter of FY27, suggesting that economic growth potentially surprised on the upside. CP issuances increased in Q1FY27, with June issuances touching a 55-month high, while incremental bank credit rose to Rs 5.6 lakh crore in Q1FY27 compared with Rs 2.4 lakh crore in the corresponding period last year.
SBI Research said the top sectors with higher CP issuances also recorded stronger bank credit growth and together accounted for around 69% of new project announcements in Q1FY27.
The report further said banks had been borrowing through certificates of deposit (CDs), but this trend is likely to reverse. It noted that with the record Rs 7 lakh crore deposit accretion during the fortnight ended June 30, liquidity is likely to become more comfortable.
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