Archive · 1 Oct 2026
Loans Against Fixed Deposits Surge 43.2% to ₹2.04 Lakh Crore
People can borrow money from banks using their fixed deposits as security.
This lets them get cash without closing their deposits early.
These loans grew to ₹2.04 lakh crore by August 31, 2026.
That was 43.2% higher than one year earlier.
Overall bank lending also increased, but more slowly, by 19.1%.
Banks also received about $133 billion through FCNR(B) foreign-currency deposits.
These deposits let non-resident Indians keep money in foreign currencies with Indian banks.
Lending to industries and other non-food sectors also grew during August.
Bank credit against fixed deposits rose 43.2% year-on-year to ₹2.04 lakh crore by August 31, 2026.
Such advances increased from ₹1.43 lakh crore a year earlier and ₹1.69 lakh crore on March 31, 2026.
Overall bank credit grew 19.1% year-on-year to ₹223.88 lakh crore during the same period.
Banks mobilised about $133 billion through FCNR(B) deposits, which accounted for most total foreign-currency inflows.
Bank credit to industry grew 18.2% in August, while non-food bank credit increased 18.8% year-on-year.
- Who
- Indian banks, depositors, non-resident Indians, and the Reserve Bank of India, which reported the data.
- What
- Bank credit against fixed deposits rose 43.2% year-on-year to ₹2.04 lakh crore, while foreign-currency inflows and industrial credit also increased.
- When
- The figures were reported for August 31, 2026; the report was published on September 30, 2026.
- Where
- India’s banking system.
- Why
- Loans against fixed deposits allow customers to raise funds without prematurely withdrawing their deposits; FCNR(B) deposits also helped bring foreign-currency funds into Indian banks.
- Loans against fixed deposits
- ₹2.04 lakh crore as of August 31, 2026
- Year-on-year increase
- 43.2%, from ₹1.43 lakh crore a year earlier
- Financial-year increase
- 20.8%, from ₹1.69 lakh crore on March 31, 2026
- Overall bank credit
- ₹223.88 lakh crore, up 19.1% year-on-year
- Total reported foreign-currency inflows
- $143.596 billion through FCNR(B), overseas foreign-currency borrowings, and external commercial borrowings
- FCNR(B) inflows
- $132.980 billion, accounting for most reported foreign-currency inflows
- Industry credit growth
- 18.2% in August, compared with 7% during the same period last year