SBI Report Finds Indian Deposit Growth Resilient Despite Lower Rates

State Bank of India Research reported that deposit growth in India remained resilient through the first half of 2026, despite a decline in real interest rates. According to the SBI Ecowrap report, the real interest rate fell from 2.52 percent in January to 0.87 percent in June, while deposit growth actually improved from 12.3 percent to 13.3 percent over the same period.

The analysis attributes this growth to the existing rate structure rather than a direct correlation between real interest rates and deposits. The report also noted that FCNR(B) inflows of USD 36.7 billion enabled the Reserve Bank of India to recoup approximately USD 20 billion in foreign exchange reserves by July 31.

SBI Research described the Reserve Bank of India's communication as predominantly dovish. The report further praised the central bank's proposed measures to standardize loan pricing and its plan to resume on-tap licensing for Urban Cooperative Banks to improve financial inclusion.