Negative impactCompany
ICICI Bank says FCNR(B) deposits could be slightly NIM dilutive
Economic Times 2d ago·18 Jul 2026, 2:22 pm
ICICI Bank has clarified that its recent efforts to mobilise foreign currency non-resident (bank) (FCNR(B)) deposits could slightly reduce its net interest margins (NIMs). The bank explained that while these deposits are important for its international business, they carry a margin impact that may affect profitability in the short term.
Despite this, the bank remains confident that its overall margins will likely stay within a stable range for the upcoming financial year. Management emphasised that the bank will continue to focus on optimising other profitability drivers and leveraging its strong overseas franchise to manage the impact effectively.
Investors should monitor how the bank manages this trade-off between growing its global deposit base and maintaining healthy margins. Keeping an eye on the bank's overall profitability metrics and its strategy for overseas growth will be key to understanding the long-term effect on its earnings.
Excerpt from Economic Times
Published On Jul 18, 2026 at 07:52 PM IST India's second largest private lender said the temporary regulatory measures announced by the RBI to attract FCNR(B) deposits are expected to support foreign currency inflows, but acknowledged that the deposits could come at a slightly higher funding cost. "FCNR(B) deposits…Read the original at Economic Times
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Key takeaways
- Concerns ICICIBANK.
- Category: Company.
- AI reads the tone as negative (potentially bearish) for the stock.
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