FCNR(B) inflows could drop to $55bn as Middle East conflict curtails deposits
HDFC Bank says FCNR(B) deposits may total only $50‑55 billion, far below the $60‑80 billion originally projected. Tax on interest, tighter West Asian liquidity rules and a client‑onboarding ban in Dubai have throttled non‑resident inflows as the RBI incentive window closes Sept 30. The shortfall could pressure the bank’s leverage‑driven growth plan.