MUMBAI: Aggregate deposits with banks rose to Rs 265.4 lakh crore as on June 30, 2026, with the system recording a sharp fortnightly increase of about Rs 7 lakh crore, or 2.7%, driven by a balanced rise across both demand and time deposits. The last fortnight surge has taken the year-on-year deposit growth for Q1FY27 to 13.3%, significantly higher than the 10.1% growth recorded a year ago.Despite the last fortnight surge, deposit growth continued to lag credit growth. Bank credit, or advances, stood at Rs 219.3 lakh crore as on June 30, 2026, after increasing by Rs 3.8 lakh crore during the fortnight, marking a growth of 1.8%. On a year-on-year basis, credit growth accelerated sharply to 18.6% nearly double the 9.5% growth recorded in June 2025.

Despite Surge, Deposit Growth Still Lags Credit Expansion

The growth in the first three months at 1.2% or Rs 3.1 lakh crore was less than the fortnightly growth because the earlier fortnights had seen bank deposits shrink from end March 2026 levels. Until the fortnight ended June 15, 2026 bank deposits were down Rs 3.9 lakh crore or -1.5% from end-March 2026 levels.“Netting out the quarter end deposit mobilisation, we believe that the surge is also on account of a potential jump in capital flows because of FCNR(B), ECB and OFCB. India has also received $7 bn FII inflows since the measures announced by govt to bring the foreign inflows and boost the rupee. Cumulative Debt under the fully accessible route (FAR) has seen inflows amount to $2.7 bn since then,” said Soumya Kanti Ghosh, chief economist, SBI in a report.According to the report, an informed guess of the magnitude of overall capital flows stripping out the trend growth indicates that this number could be $15 bn. FCNR(B) flows have picked up pace.With credit growth continuing to outstrip growth in deposits, banks have been going slow on their investments which are largely in g-secs. At the end of the first quarter, banks investments stood at Rs 70.9 lakh crore. On a year-on-year basis, investment growth moderated to 5.8%, compared with an 8.7% increase in the preceding year.