Private banks' margins fall as FCNR deposits raise funding costs
In the second quarter, leading private sector banks in India reported a drop in net interest margins. This decline was primarily caused by the costs associated with foreign currency non-resident deposits. Analysts noted that the leveraged nature of these deposits significantly impacted profitability.
Additionally, banks faced pressure from faster repricing of assets as interest rates declined.
Synopsis In the second quarter, leading private sector banks in India reported a drop in net interest margins. This decline was primarily caused by the costs associated with foreign currency non-resident deposits. Analysts noted that the leveraged na... [4039 chars]
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- Business
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- The Economic Times
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- Monday, 19 October 2026, 1:07 am IST
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