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The Economic Times

Economy / The Economic Times

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Private banks' margins fall as FCNR deposits raise funding costs

In the second quarter, leading private sector banks in India reported a drop in net interest margins. This decline was primarily caused by the costs associated with foreign currency non-resident deposits. Analysts noted that the leveraged nature of these deposits significantly impacted profitability. Additionally, banks faced pressure from faster repricing of assets as interest rates declined.

19 Oct 2026 1:07 am