Bank advances against fixed deposits surged 53.3 per cent to ₹2.17 trillion as of September 30, 2026, RBI data showed. This growth got a boost from FCNR(B) deposits. The RBI said, "While credit growth in segments such as housing and vehicle loans remained resilient, 'advances against fixed deposits' accelerated."
Scheduled commercial banks' (SCBs') advances against fixed deposits, including Foreign Currency Non-Resident (Bank) (FCNR(B)) deposits, surged 53.3 per cent year-on-year (YoY) to ₹2.17 trillion as of September 30, 2026, according to Reserve Bank of India (RBI) data.
The growth in this category, which also includes advances against other specified deposits, was significantly higher than the 14.3 per cent rise recorded a year ago as banks extended loans against FCNR(B) deposits mobilised under the concessional swap scheme, which came into effect on June 8.
As of August 31, 2026, banks had mobilised $133 billion through deposits under the facility.
Overall bank credit grew 19.4 per cent YoY to ₹229.95 trillion as of September 30, 2026, compared with 11.4 per cent growth in the corresponding period last year. Non-food credit rose 19.1 per cent to ₹228.98 trillion.
"Credit to personal [retail] loans segment recorded a y-o-y growth of 17.3 per cent, as compared with 11.5 per cent a year ago," RBI said.
Gold pulls forex reserves down for seventh straight week to $719.8 billion
Bank holidays in November 2026: Check state-wise list of closures in India
RBI steps up scrutiny of banks' cyber defences amid rising AI-led attacks
Best of Opinion: Tax reform must be guided by long-term economic objectives
New RBI forex derivative rules make FCNR(B) hedging costlier for banks
"While credit growth in segments such as housing and vehicle loans remained resilient, 'advances against fixed deposits' accelerated. Growth in loans against gold jewellery and education decelerated compared to last year, albeit it remained strong," RBI said.
Among major sectors, credit to services recorded the fastest growth, rising 28.3 per cent to ₹64.9 trillion. Credit to agriculture grew 19.5 per cent to ₹28.19 trillion, compared with 8.9 per cent growth last year.
Lending to non-banking financial companies (NBFCs) increased 41.8 per cent to ₹22.53 trillion, accelerating from 3.7 per cent growth a year earlier.
Credit to industry grew 19.5 per cent to ₹49.77 trillion, compared with 7.7 per cent growth in the year-ago period. Within industry, lending to medium enterprises rose 33.2 per cent, while credit to micro and small enterprises grew 24.4 per cent.
Personal loans grew 17.3 per cent to ₹74.27 trillion, accelerating from 11.5 per cent growth in the corresponding period last year. Within personal loans, bank credit extended against gold jewellery expanded rapidly, surging 83 per cent YoY to reach ₹5.6 lakh crore.
On the lending-rate front, the weighted average lending rate (WALR) on fresh rupee loans sanctioned by scheduled commercial banks declined to 8.51 per cent in September 2026 from 8.61 per cent in August, according to RBI data. The WALR on outstanding rupee loans remained unchanged at 8.96 per cent during the month.
Among bank groups, the WALR on fresh loans declined to 7.93 per cent for public sector banks and 7.76 per cent for foreign banks in September, while private sector banks reported 9.19 per cent. The corresponding rates on outstanding loans were 8.39 per cent, 8.01 per cent and 9.82 per cent, respectively.