Deposit

Banks, especially smaller lenders, may raise FCNR(B) deposit rates further after RBI temporarily removed the interest-rate ceiling on select maturities

State-owned lenders witnessed a sharp surge in green deposit mobilisation in FY26 amid increased depositors awareness and the maturation of the Reserve Bank of India's (RBI) Green Deposit Framework, introduced in 2023. According to PTI's analysis of banks' Annual reports for 2025-26, eight state-owned lenders raised Rs 3,733.11 crore in FY26 through green deposits, compared to Rs 1,831.79 crore in the year-ago period. The rise in green deposits reflects a growing focus among banks and depositors towards sustainable finance, with lenders increasingly linking their fundraising efforts with environmentally responsible lending, analysts said. State Bank of India (SBI), the country's largest lender, raised Rs 317.39 crore through its green deposit products till March 2026, with outstanding green deposits recorded at Rs 218 crore as on March 31, 2026. SBI garnered Rs 189.08 crore through green deposits in FY26, with the entire amount being deployed in clean transportation, particularly i

Draft framework would allow lenders to align deposit rates with liquidity costs under LCR norms, improving pricing efficiency and balance-sheet management

RBI proposes new rules linking bulk deposit rates to liquidity norms and tighter disclosures, aiming to improve transparency in bank deposit pricing

Q4FY26 CD issuances hit Rs 5.27 trillion; FY26 at Rs 14 trillion, outstanding near Rs 7 trillion

NaBFID's maiden one-year CD issue raised Rs 5,000 crore at 6.95%, pricing tighter than comparable AIFI issuances and signalling strong investor confidence in short-term funding markets

ICRA says the new risk-based deposit insurance premium framework, effective April 2026, could reduce bank profitability by up to ₹12,000 crore a year, though stronger banks may see gains

If these are the three challenges, there are also three key developments that everyone will watch out for

Credit growth remained strong till December 15, while deposit growth weakened further, widening the credit-deposit gap and underscoring persistent liquidity tightness in the banking system

RBI data show deposit growth lagging credit growth by 200 basis points, highlighting persistent deposit tightness even as lending demand remains strong

SBI plans to lift data centre exposure to Rs 4,000 crore by March 2026 from Rs 2,800 crore in October 2025, while setting up specialist teams and reviewing margins amid NIM contraction

Most of the locked-up funds are in the form of deposits, insurance, provident fund, and shares, Finance Minister Nirmala Sitharaman said, calling on officials to ensure they reach the rightful owners

CEO Sashidhar Jagdishan says merger synergies, reduced credit-deposit ratio and aggressive but prudent deposit growth put HDFC Bank on strong footing for FY26-27

Industry representatives for business correspondents point out that there is pressure from banks to raise deposits, despite the fact that the BC channel has already overtaken branches in doing so

The lender's total advances grew by 17.8 per cent year-on-year to Rs 2.4 trillion, while on a quarterly basis, advances were up by 5 per cent

While the proposed increase in the deposit insurance limit is not known, under various scenarios, the insured deposit ratio (IDR) may increase to 47.0-66.5 per cent

From a risk perspective, it is better to spread your deposits across multiple banks, given the extent of the current deposit cover

Outstanding amount on CDs hits all-time high of Rs 5.19 trillion as of fortnight ending February 7

Should deposit insurance revisits be episodic? Like after the collapse of Bank of Karad in 1992 and the Punjab and Maharashtra Cooperative Bank fiasco in 2019

Over 90% of the insured are co-op banks