Bank deposit growth jumps to 13.3% in Q1FY27, credit growth nearly doubles to 18.6%

India’s bank deposit growth climbed to 13.3% year-on-year in the first quarter of FY27, up sharply from 10.1% in the same period a year earlier, driven by a fortnightly surge of about Rs 7 lakh crore, or 2.7%, in the final fortnight of the quarter. Aggregate deposits stood at Rs 265.4 lakh crore as on June 30, 2026.

Credit growth accelerated even faster over the same period, nearly doubling to 18.6% year-on-year, compared with 9.5% growth recorded in June 2025. Bank credit stood at Rs 219.3 lakh crore as on June 30, 2026, after rising by Rs 3.8 lakh crore, or 1.8%, during the final fortnight alone.

The deposit numbers mark a turnaround within the quarter itself. Growth in the first three months was just 1.2%, or Rs 3.1 lakh crore — lower than the final fortnight’s growth on its own — because deposits had actually shrunk earlier in the quarter. As of the fortnight ended June 15, 2026, deposits were down Rs 3.9 lakh crore, or 1.5%, from end-March 2026 levels, before the sharp late-quarter rebound.

Soumya Kanti Ghosh, chief economist at SBI, said in a report that beyond routine quarter-end deposit mobilisation, the surge also reflects a jump in capital flows through routes including FCNR(B), external commercial borrowings and the Overseas Foreign Currency Borrowing channel. India has received $7 billion in FII inflows since the government’s measures to support the rupee, with a further $2.7 billion in cumulative debt inflows under the Fully Accessible Route.

With credit growth continuing to outpace deposit growth, banks have been going slow on investments, largely in government securities, which stood at Rs 70.9 lakh crore at the end of the quarter — a year-on-year growth of 5.8%, down from 8.7% in the preceding year.