FCNR Inflows Reshape Private Bank Earnings Outlook, But Margin Pressure Lingers

Private banks are poised for an earnings renaissance after FCNR-B mobilisation hit $136.4 billion (₹12.96 lakh crore), with ICICI Bank and RBL Bank capturing outsized shares relative to their deposit base. Kotak AMC's Harsha Upadhyaya expects earnings growth to accelerate in coming quarters as the funding pressure that squeezed margins for 18-24 months finally eases. Foreign lenders like HSBC and Standard Chartered also swept up gains, according to brokerage reports...