After foreign currency non-resident (bank) or FCNR(B) scheme closed in August with a bumper accretion of more than $127 billion, Jefferies said small private banks and NBFCs will benefit more while noting that the overall banking sector may see an earnings boost to the tune of Rs 10,000-11,000 crore.
The bumper collections have taken the total inflows from such special schemes so far to $136.4 billion, according to provisional data released by the RBI. The scheme was launched in June to boost dollar inflows and strengthen foreign exchange reserves, allowing banks to swap eligible overseas borrowings with the central bank at concessional rates, significantly lowering their cost of funds.
