FCNR Windfall Masks Slower Core Deposit Growth at Indian Banks
A review of 10 Indian banks shows that reported deposit growth in the July-September quarter averaged 21.1% year-on-year, but the headline number was flattered by special foreign currency inflows. Excluding FCNR deposits, domestic deposit growth was estimated at just 12.2%, exposing a much weaker underlying trend in bank liability mobilisation.
