{
  "id": 4490208,
  "title": "FCNR-B inflows help banks cut pricy bulk deposits",
  "url": "https://urgent.news/2026/08/30/fcnr-b-inflows-help-banks-cut-pricy-bulk-deposits",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-08-30T19:23:11.000Z",
  "source": {
    "name": "The Economic Times",
    "slug": "the-economic-times",
    "url": "https://economictimes.indiatimes.com/nri/invest/numbers-boost-fcnr-b-inflows-help-banks-cut-expensive-bulk-deposits/articleshow/133636505.cms"
  },
  "original_language": "en",
  "account": "Indian banks are capitalizing on record foreign currency non-resident (FCNR-B) inflows to reduce the cost of expensive bulk deposits, potentially improving second-quarter net interest margins, according to analysts. By shedding bulk funds, bigger banks have saved 25-60 basis points in incremental deposit costs in August, with smaller banks witnessing limited benefits due to their higher FCNR-B rates. Large banks are saving 25-40 basis points by replacing bulk deposits with FCNR-B deposits, as there are no hedging costs and no requirement to meet CRR and SLR. This could lead to an improvement in net interest margins if banks manage to maintain their lending rates. Several senior bankers confirmed plans to not renew high-cost bulk deposits and replace them with FCNR-B inflows, as the medium- to long-term liquidity profile strengthens. Canara Bank, for instance, mobilized $4.8 billion under the special mobilization scheme, surpassing the $1.5 billion target. All banks combined could end up mobilizing $80-85 billion through the FCNR-B window, surpassing expectations.",
  "summary": null,
  "key_points": [
    "Indian banks use FCNR-B inflows to cut costly bulk deposits",
    "Large banks save 25-40 basis points on deposit costs",
    "Combined mobilization could reach $80-85 billion"
  ],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}