Nifty Bank jumps 1% as solid FX inflows spur liquidity, credit growth hopes

The NSE Nifty Bank index rose 1.01 per cent to 57,753.60, recording a sharp intra-day gain. At the last check, the Nifty Bank index was up 0.70 per cent at 57,571.20, barring Federal Bank and AU Small Finance Bank, other banking stocks were trading with gains.

 

Meanwhile, the NSE Nifty 50 index was up 0.22 per cent at 23,967.40. Among the basket, IndusInd Bank was the top gainer. The stock zoomed 2.3 per cent to an intra-day high of ₹1,001. At the last check, the stock quoted with a gain of 1.81 per cent at ₹23.72. The stock's 52-week high stands at ₹1,011, hit on July 22, 2026, while the 52-week low of ₹710 was registered on September 26, 2025. 

 

 

Among other Banks, HDFC Bank, Union Bank and IDFC First Bank soared nearly 2 per cent each. Meanwhile, the share price of India's largest state-run bank, State Bank of India (SBI), increased 1.5 per cent to ₹1,036 at intra-day.

 

The gains in bank stocks come against a backdrop of a sharp surge in foreign-currency inflows, which has boosted liquidity across the banking system and could provide a fresh leg-up to credit growth. According Motilal Oswal Financial Services, banks have garnered $136.4 billion in forex inflows under the RBI’s twin swap facilities, with FCNR(B) deposits accounting for $127.2 billion. The resulting surplus liquidity of more than ₹6 trillion has pushed deposit growth to 14.7 per cent year-on-year, while the brokerage has raised its FY27 system credit growth estimate by around 150 basis points to 15.5-16 per cent, a potential positive for banks’ balance sheets and earnings, the brokerage said. 

 

MOFSL noted that, “Among banks, ICICIBC has mobilised $17.9 billion of FCNR(B) deposits, capturing 14 per cent market share of the total FCNR(B) inflows. SBI has garnered $9 billion a few days prior to the close and is expected to beat its $10 billion guidance. RBL Bank has added $3.4 billion, capturing 2.7 per cent share, better than its deposit market share of 0.5 per cent.”

 

The brokerage further added that the FX inflows have helped to strengthen FX reserves from $672 billion as of 12th June 2026 to an all-time high of $729 billion as of 21st August 2026, with a total net addition of $58 billion in this period.

   

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