New Delhi, July 11 -- India's banking system and credit markets are signaling a stronger start to FY27, with SBI Research pointing to buoyant capital flows, higher deposit growth and a pickup in both commercial paper and bank credit as early signs that economic growth may have surprised on the upside in Q1FY27.

The report by SBI Research expects the momentum to sustain through the quarter. It flags softer crude prices as a key tailwind. "Average crude oil price for Indian basket is now expected at $80/bbl which will lead to savings of $30 to $35 bn in oil import bill against our previous estimate when oil price crossed $130/bbl." The house also notes the rupee outlook "remains positive" despite a recent 0.4% depreciation amid geopolitica...