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FCNR-B deposits are boosting bank growth — but could squeeze margins, says report

Source: Business Today

Indian banks are seeing a sharp growth boost from FCNR-B deposits, with loan growth across 30 banks accelerating to 19.1% YoY in Q2FY27. However, the influx of low-cost foreign-currency deposits could weigh on margins if banks are unable to deploy the funds quickly into profitable assets.

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This digest is published with acknowledgment to Business Today. For the complete analysis, headnotes, and citations, please refer to the source.

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