Topic
deposits
Data centres could pay hundreds of millions in deposits for power demands under Ofgem proposals
Ofgem has proposed that data centre developers pay a refundable deposit of up to £712,500 per megawatt to connect to the electricity grid, potentially costing hundreds of millions for large projects. The measure aims to tackle speculative projects clogging the grid connection queue, which has more than tripled in a year to 125 GW. A consultation runs until 16 September.
Finance PNB Targets $2.5 Billion via FCNR(B) Deposits, Raises $425 Million So Far
State-run Punjab National Bank targets $2.5 billion from Foreign Currency Non-Resident Bank deposits, having raised $425 million so far. MD Ashok Chandra cites major traction from the UK, Dubai and GIFT City. The bank also reported a three-fold jump in first-quarter profits, while monitoring monsoon risks to agriculture.
Finance Finance Minister Nirmala Sitharaman Urges Banks to Sustain Foreign Currency Deposit Momentum with Innovative Products
Finance Minister Nirmala Sitharaman has directed public sector banks to enhance outreach to NRIs and introduce innovative deposit products to sustain momentum in foreign currency deposits. The review covered FCNR(B), ECB, and OFCB swap initiatives, with bankers noting significant NRI interest from key regions.
Finance Banks Add Rs 7 Lakh Crore in Deposits During Last Fortnight of Q1FY27
Aggregate deposits with Indian banks surged by Rs 7 lakh crore (2.7%) in the last fortnight of Q1FY27 to reach Rs 265.4 lakh crore, driven by a balanced rise in demand and time deposits. Despite this, year-on-year credit growth of 18.6% continues to outpace deposit growth of 13.3%, leading to slower bank investments in government securities. SBI's chief economist attributes the deposit surge partly to capital inflows from FCNR(B), ECB, and OFCB, alongside $7 billion in FII inflows following government measures.
Finance Indian Bank targets $2 billion through FCNR deposits after RBI removes interest rate ceiling
Indian Bank plans to raise $2 billion through FCNR(B) deposits after the RBI removed the interest rate ceiling on fresh deposits with maturities of 3-5 years until September 30, 2026. The bank has secured $140 million since mid-June and raised the deposit rate to 6%. The move is expected to boost foreign currency inflows for the bank, which also reported a 10% rise in Q1 net profit to Rs 3,273 crore.
Finance Loan Growth Quickens in Q1 as Deposit Gap Widens, Pressuring Bank Margins
Indian banks reported elevated credit growth in Q1 FY27, with some lenders posting advances growth double the system rate. However, deposit growth remained sluggish, widening the credit-deposit gap to 5.4% and pushing the loan-to-deposit ratio to 82.7%, the highest in over a decade. Public sector banks are losing deposit market share, while private banks tactically shed high-cost bulk deposits.
Finance RBI Allows Overseas Branches to Lend to NRIs for FCNR(B) Deposits, Boosts Foreign Capital Inflows
The Reserve Bank of India has revamped the FCNR(B) scheme, allowing Indian banks to route money from overseas branches to non-resident Indians for deposits, while eliminating currency and credit risks via a swap window and standby letters of credit. The move is expected to boost NRI deposits with attractive fixed rates of 6-7% and leverage potential for double-digit returns.
Finance Credit Surges 17.7% as Deposit Slowdown Widens Funding Gap
Bank credit in India surged 17.7% year-on-year by May 31, 2026, the strongest since June 2024, while deposits declined by Rs 2.3 lakh crore since March 31, widening the funding gap to Rs 3.8 lakh crore. The credit-deposit ratio rose to 82.8%, squeezing bank liquidity and prompting adjustments in government securities holdings.
Finance RBI Proposes Transparent Bulk Deposit Pricing Framework
The Reserve Bank of India (RBI) has proposed new rules to enhance transparency and flexibility in bulk deposit pricing. Banks will need to disclose interest rates upfront and consider withdrawal risks in pricing.
Finance Business Credit Share Surges in FY26 Amid Rising Deposits
In FY26, business credit share in bank loans increased significantly, with private corporate sector loans growing by 15.5%. Deposit growth also accelerated to 11.5%, reflecting a shift towards term deposits.