India bank deposit growth to hit 16% in FY27: Jefferies

Jefferies forecasts Indian bank deposit growth accelerating to 16% in FY27, driven by FCNR-B inflows, before easing to 11–12% in FY28–29. Credit growth is seen normalising from 18% to 16% in FY27. The sector's net NPA ratio hit a two-decade low of 0.4% in FY26, with banks increasingly prioritising tech and AI over branch expansion.