HDFC & other giants count the cost of a dollar magnet
Synopsis Banks' leverage on FCNR(B) deposits could pressure profit margins. Overseas interest rates are lower, and lending spreads remain thin. This impacts banks with lower
Synopsis Banks' leverage on FCNR(B) deposits could pressure profit margins. Overseas interest rates are lower, and lending spreads remain thin. This impacts banks with lower funding costs, like ICICI Bank and HDFC Bank. The FCNR(B) scheme has mobilized over $32 billion by mid-July. Deployment of these funds profitably is key for banks' success.
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