FCNR inflows ease funding pressure; NIM may compress 10-30 bps: Kotak

FCNR, ECB and OFCB inflows of $136 billion have materially improved deposit availability for banks, helping lower the credit-deposit (CD) ratio and cost of funds, Kotak Institutional Equities said. The near-term impact, however, is likely to be a 10-30 basis-point compression in net interest margin…