Bank advances against deposits up 53% due to FCNR(B) leverage: RBI data

RBI data shows bank advances against fixed deposits rose 53.3 per cent to Rs 2.17 trillion in September 2026, while overall bank credit expanded 19.4 per cent year-on-year

Scheduled Commercial Bank’s (SCB’s) advances against fixed deposits, including Foreign Currency Non-Resident (FCNR)(B) deposits, surged 53.3 per cent year-on-year (Y-o-Y) to ₹2.17 trillion as of September 30, 2026, according to Reserve Bank of India (RBI) data.

 

The growth in this category -- which also includes advances against other specified deposits -- was significantly higher than the 14.3 per cent rise recorded a year ago as banks extended loans against FCNB (B) deposits mobilised under the concessional swap scheme, which came into effect from 8 June.

 

As of August 31, 2026, banks had mobilised $133 billion through the deposits under the facility.

 

Overall, bank credit grew 19.4 per cent Y-o-Y to ₹229.95 trillion as of September 30, 2026 compared with 11.4 per cent growth in the corresponding period last year. Non-food credit rose 19.1 per cent to ₹228.98 trillion.

  

“Credit to personal [retail] loans segment recorded a Y-o-Y growth of 17.3 per cent, as compared with 11.5 per cent a year ago,” the RBI said. 

 

“While credit growth in segments such as housing and vehicle loans remained resilient, ‘advances against fixed deposits’ accelerated. Growth in loans against gold jewellery and education decelerated compared to last year, albeit it remained strong,” the RBI said.

 

Among major sectors, credit to services recorded the fastest growth, rising 28.3 per cent to ₹64.9 trillion. Credit to agriculture grew by 19.5 per cent to ₹28.19 trillion as compared to 8.9 per cent growth last year.

 

Lending to non-banking financial companies (NBFCs) increased 41.8 per cent to ₹22.53 trillion, accelerating from 3.7 per cent growth a year earlier.

 

Credit to industry grew 19.5 per cent to ₹49.77 trillion, compared with 7.7 per cent growth in the year-ago period. Within industry, lending to medium enterprises rose 33.2 per cent, while credit to micro and small enterprises grew 24.4 per cent.

 

Personal loans grew 17.3 per cent to ₹74.27 trillion, moderating from 11.5 per cent growth in the corresponding period last year. Within personal loans, bank credit extended against gold jewellery expanded rapidly, surging 83 per cent Y-o-Y to reach ₹5.6 trillion.

 

On the lending-rate front, the weighted average lending rate (WALR) on fresh rupee loans sanctioned by scheduled commercial banks declined to 8.51 per cent in September 30, 2026 from 8.61 per cent in August, according to RBI data. The WALR on outstanding rupee loans remained unchanged at 8.96 per cent during the month.

 

Among bank groups, the WALR on fresh loans declined to 7.93 per cent for public sector banks and 7.76 per cent for foreign banks in September, while private sector banks reported 9.19 per cent. The corresponding rates on outstanding loans were 8.39 per cent, 8.01 per cent and 9.82 per cent, respectively.