Get all your news in one place.
100's of premium titles.
One app.
Start reading
The Economic Times
The Economic Times
Nikhil Agarwal

Indian banks face a Q2 paradox: FCNR boosts loan growth but margins shrink

FCNR B HDFC Bank Kotak Systematix Kotak Mahindra Bank ICICI Bank Dolat Capital Nikhil Agarwal Nomura Axis Bank

Banks are likely to report their strongest credit growth momentum in years in upcoming Q2 results, but the headline expansion comes with a catch. FCNR(B) deposits have lifted funding and helped accelerate loan books, while the resulting liquidity surplus, lower CASA ratios and higher deposit costs are expected to squeeze net interest margins (NIMs).

That tension is set to define the sector’s Q2F earnings season: stronger loan growth and lower credit costs on one side, but weaker margins and a less favourable funding mix on the other.

Sign up to read this article
Read news from 100's of titles, curated specifically for you.
Already a member? Sign in here
Related Stories
Top stories on inkl right now
One subscription that gives you access to news from hundreds of sites
Already a member? Sign in here
Our Picks
US Schools Record Nearly 12,000 Book Bans, the Highest Ever in a Single Year, as 'Jane Eyre' and 'Lessons in Chemistry' Join the List
PEN America reports nearly 12,000 book-ban instances in US schools, a record total, as Texas overtakes Florida and AI tools enter the removal process.
International Business Times UK
International Business Times UK
Alice Zaslavsky’s shortcut beetroot baked risotto – recipe
An unconventional technique makes this vibrant rice – finished with dill fronds – a lower-touch dinner for weeknights
The Guardian - AU
The Guardian - AU
Does your sleep tracker get it right? A Pittsburgh neuroscientist weighs in
On a typical night, I go to bed wearing a tracking watch on one wrist and another type of tracker on the other wrist. Then I compare their sleep findings while I drink my morning coffee.
The Conversation
The Conversation
There's A Reason Taxi Cabs Are Almost Always Yellow
Yellow taxis are easy to spot in traffic, but the color's history goes far beyond simple visibility.
Motor1
Motor1
How ‘technoference’ can disrupt parent-child connections
Have you ever been telling someone a story when their phone lights up, and their eyes flicker toward their device?
The Conversation
The Conversation
Holding Lightning by Emily Lordi review – an intimate portrait of Whitney Houston
An empathetic biography of the the singer recasts her tumultuous later career as a triumph of self-expression
The Guardian - UK
The Guardian - UK
Fourteen days free
Download the app
One app. One membership.
100+ trusted global sources.
Download on the AppStore Get it on Google Play