FCNR Inflows Push Short-Term Borrowing Costs Lower Amid Rising Liquidity: ICICI Bank - The Tribune

FCNR inflows push short-term borrowing costs lower amid rising liquidity: ICICI Bank

The report said the rise in liquidity could have implications beyond short-term borrowing costs, as historical data show a relationship between liquidity and inflation with a lag

FCNR inflows push short-term borrowing costs lower amid rising liquidity: ICICI Bank - The Tribune

Interest rates on three-month certificates of deposit (CDs) have fallen by more than 100 basis points from their peak this year as a surge in FCNR (B) inflows has pushed liquidity higher in the banking system, according to ICICI Bank Research.

Surplus liquidity from FCNR(B) flows may lower bank funding costs

New Delhi, Sep 5 (IANS) The cost of funds for banks is expected to decline by up to 50 basis points as robust Foreign Currency Non-Resident (Bank) or FCNR(B) inflows boost liquidity and reduce dependence on higher-cost certificates of deposit (CDs), as per multiple reports. The surplus liquidity is expected to support credit expansion particularly in short-term lending, according to them. While enabling refinancing agencies to prepay costlier …

Dollar Inflows Give Indian Banks a Liquidity Boost Before Festive Demand - Business News Week

New Delhi, Sep 5: India’s banking system is entering the festive season with a strong liquidity cushion after a large mobilisation of foreign currency through the Reserve Bank of India’s special forex measures. Banks mobilised about $127.2 billion through FCNR(B) deposits, while total foreign-currency mobilisation through FCNR(B) deposits, overseas foreign-currency borrowings and external commercial borrowings […] The post Dollar Inflows Give In…