Important StoriesSupreme Court rules YES Bank's AT1 bond write-off illegalSTT collection surges 52% in FY27 amid market volatility; net direct tax collection grows 13%India’s September exports jump 23% to $44.4 billion; trade deficit narrows to $30.2 billionKochi Port set to cruise into the future of AI immigrationIndia says first phase of US trade deal finalisedFollow UsFOLLOW US ON WHATSAPPHomeGO BACK TO HOME THIS AD SUPPORTS OUR JOURNALISM. SUBSCRIBE FOR MINIMAL ADS. THIS AD SUPPORTS OUR JOURNALISM. SUBSCRIBE FOR MINIMAL ADS. Deposits and advances see robust growth in H1FY27 All scheduled banks reported deposit and advances grew 9.93 per cent y-o-y and 11.27 per cent y-o-y By BL Mumbai Bureau Updated - October 15, 2026 at 09:29 PM. | Mumbai ×ShareWhatsAppXFacebookLinkedInMessengerRedditMailhttps://www.thehindubusinessline.com/money-and-banking/deposits-and-advances-see-rebust-growth-in-h1fy25/article71589352.eceCopy Year-to-date deposit growth was higher at 8.11 per cent on the back of FCNR(B) deposits

In a clear indication that the Indian economy has been strong, and the economic momentum remains broad-based, all scheduled banks deposits and advances grew at 17.70 per cent year-on-year (y-o-y) and 19.09 per cent y-o-y respectively, in the first half (H1) of FY27 was higher vis-a-vis the year ago period.

All scheduled banks reported deposit and advances grew 9.93 per cent y-o-y and 11.27 per cent y-o-y respectively, in the first half (H1) of FY26.

Year-to-date (YTD: March-end to September-end 2026) deposit growth was higher at 8.11 per cent on the back of FCNR(B) deposits (aggregating $133 billion) mobilised by banks under RBI’s limited period foreign currency (USD-INR) swap window between June 8, 2026 to August 31, 2026. The deposit growth in the year ago period was 7.42 per cent.

To attract foreign capital, the Reserve Bank of India announced a series of measures on June 5, 2026, including a forex swap facility bearing the full hedging cost to Authorised Dealer banks for raising fresh 3-5-year FCNR(B) deposits.

YTD advances growth was a lower at 4.17 per cent against 4.60 per cent a year ago. Banks are expecting to deploy the proceeds of the FCNR(B) deposits in the next couple of months.

“Bank credit growth became broad based and strengthened further…A large interest rate differential in favour of small savings could lead to migration of deposits away from banks, thus widening the credit-deposit gap in the banking system. Transmission to deposit rates further strengthened in H1, while it moderated in the case of lending rates,” according to the RBI’s latest monetary policy report.

The credit-deposit gap has narrowed to 81 basis points (bps) in the fortnight ended September 15, 2026, from over 89 bps in the corresponding period last year, RBI said.

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