Indian banks seek NRI deposits to address funding gap
after close1 source ↓written by the desknot a recommendation
Indian banks are increasingly targeting foreign-currency deposits from Non-Resident Indians (NRIs) to tackle a liquidity squeeze caused by loan growth outpacing deposits. The Reserve Bank of India (RBI) has eased hedging costs, making it cheaper for banks to attract foreign capital for domestic lending in sectors like infrastructure and commercial real estate. This shift may help stabilize funding costs amid rising interest rates on domestic deposits.
Not investment advice. For informational purposes only.