New Delhi, Sept. 22 -- Indian banks have received a significant liquidity boost after mobilising a record USD 127 billion through Foreign Currency Non-Resident Bank (FCNR(B)) deposits, easing funding pressures and strengthening medium-term liquidity, according to S&P Global Ratings.

Banks raised the deposits between June 8 and August 31, 2026, with the amount equivalent to around 4.5 per cent of the banking system's deposit base as of March 31, 2026.

S&P said the inflows are broadly positive for banks, particularly as credit growth has exceeded deposit growth over the past four years, creating tighter funding conditions.

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