FCNR Windfall Masks Slower Domestic Deposit Growth at Banks in Q2
An analysis of 10 banks shows that reported deposit growth in the July-September quarter averaged 21.1% year-on-year, but the headline number was flattered by a surge in foreign currency non-resident deposits. Excluding these special inflows, domestic deposit growth was estimated at just 12.2%, exposing a much narrower underlying trend in bank liability expansion.
