Economy · India
Banks See Inflows from FCNR(B) Deposits, Impact on Margins Debated
Banks are experiencing significant inflows from Foreign Currency Non-Resident (Bank) or FCNR(B) deposits. These deposits offer a more cost-effective and balance-sheet-efficient funding source for banks. However, their fixed maturity periods and initial deployment complexities could potentially pressure profit margins. ICICI Bank and Kotak Mahindra Bank are noted for receiving higher inflows, while IDFC First Bank is highlighted as having the strongest potential for earnings growth due to these deposits.
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- Centre (2): Business Today, The Economic Times