NRI Inflows to Strengthen India’s Banking Sector, Deposit Growth Expected to Reach 15 pc in FY27
New Delhi, July 20: Rising inflows from Non-Resident Indians (NRIs) are expected to provide a significant boost to India’s banking sector, with deposit growth projected to accelerate to around 15% in the financial year 2026-27.
The increase in NRI deposits is likely to support banks by improving liquidity and strengthening their funding base. Higher remittances and overseas investments from the Indian diaspora are expected to contribute to the growth of deposits while supporting the country’s financial stability.
The projected rise comes at a time when banks are focusing on expanding their deposit base to meet growing credit demand from businesses, individuals, and various sectors of the economy. Strong deposit growth will help financial institutions maintain a healthy balance between lending activities and available funds.
Experts believe continued confidence among overseas Indians, along with India’s economic growth prospects, will remain key drivers of higher inflows in the coming year. The trend is expected to further strengthen the role of the Indian diaspora in supporting the country’s financial ecosystem.
The expected increase in deposits highlights the importance of NRI contributions in boosting banking sector resilience and supporting long-term economic growth.
