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 “shot in the arm” for the banking system, improving stability at a time when lenders are balancing credit growth, deposit competition and funding costs.
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 “shot in the arm” for the banking system, improving stability at a time when lenders are balancing credit growth, deposit competition and funding costs.
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Reported by RDU Global Correspondent. Formatted and verified using real-time institutional and journalistic wire feeds. Independent reporting adhering to the RDU Global Editorial Code of Conduct.
