FCNR boost
RBL has already used ₹10,309 crore as collateral for lending against FCNR(B) deposits. So, the net inflow on account of FCNR (B) available for either repaying existing term-deposits or for fresh lending is ₹22,163 crore. FCNR(B) deposits are exempt from the Cash Reserve Ratio (CRR) and Statutory Liquidity Ratio (SLR) requirements. So, the entire FCNR(B) deposits can be used for lending, with the average yield on advances at about 11.2% based on Q1FY27. The lending could fetch a net interest spread of about 5%. Consequently, the net interest income (NII) could get a boost of ₹1,100 crore per annum, which is about 15% of the likely NII of FY27 based on the annualized NII of Q1FY27. However, a caveat here. The full positive impact is unlikely to reflect in FY27. In fact, NII in FY27 could be adversely affected because interest on FCNR(B) must be accounted for immediately, whereas deploying those funds for lending could take some time.
