FCNR Deposits May Hit $100 Billion! Will Fresh Liquidity Drive Banking Stocks Higher?

FCNR deposits are expected to witness strong inflows, providing much-needed liquidity support to India’s banking system. Prateek Nigudkar, Senior Fund Manager, Shriram AMC, believes total inflows could approach $100 billion, helping banks strengthen deposit growth and sustain healthy credit expansion. He says lenders with a strong overseas presence are likely to benefit the most from the scheme, easing pressure on credit-deposit ratios. With liquidity improving and credit demand remaining robust, the banking sector could receive an additional growth boost. Watch the full discussion for his outlook on banks and the FCNR scheme.