S&P Says $127 Billion Foreign Currency Deposits Gave Indian Banks a Funding Boost
A $127 billion mobilisation of foreign currency deposits has materially strengthened Indian banks' liquidity and funding profile, according to S&P Global Ratings. The inflow, driven by attractive deposit rates and diaspora participation, has eased asset-liability pressures and could support balance-sheet expansion of $190 billion to $220 billion. The rating agency said the scheme has acted as a โshot in the armโ for the banking system, improving stability at a time when lenders are balancing credit growth, deposit competition and funding costs.
