Full flow FCNR deposits could hit $100 billion, beat estimates
Strong FCNR(B) deposit inflows have led analysts to raise their estimates for dollar mobilisation through the scheme. Jefferies now expects inflows to reach $90-100 billion by August 31, up from its earlier estimate of $70-80 billion.
Mumbai: Analysts are predicting that foreign currency non-resident (bank), or FCNR (B), deposit inflows could surpass the $100 billion mark by August 31. This optimistic projection is based on the strong momentum observed in the past week. Jefferies India has revised its estimates to anticipate inflows ranging from $90 billion to $100 billion, up from their previous expectation of $70 billion to $80 billion.
The revised forecast exceeds the $80 billion estimate provided by RBI governor Sanjay Malhotra in an interview last week. Indian banks have successfully mobilized an impressive $16 billion over the course of just eight days, from August 13 to August 21, bringing the total FCNR (B) deposits to $73 billion, surpassing initial projections.
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