Large banks could be biggest beneficiaries of RBI’s FCNR move: MOFSL’s Nitin Aggarwal

Nitin Aggarwal, Head-BFSI Research Institutional Equities at MOFSL, says the RBI’s latest FCNR deposit measures could attract $40–50 billion of foreign currency inflows over the next few months. He believes large private banks and select PSU lenders with strong NRI franchises are best placed to benefit. Aggarwal notes that depositors could earn annualised returns of 15–28%, while banks would gain access to a competitive source of foreign-currency funding.