Bank deposits grow 17.8% in August, fastest in decade as FCNR-B inflows mask local mobilisation woes

Bank deposits grew 17.8% year-on-year at the end of August, the fastest pace in a decade, driven largely by a surge in FCNR-B deposits after the RBI opened a special window for dollar inflows. Credit growth eased slightly to 19.1%, while banks continued to face challenges in mobilising domestic savings.