SBI Sees FCNR Liquidity Deployment Over 3-4 Months

expects FCNR(B) deposit-related liquidity to enter the market over the next three to four months. Credit growth of 17–18% continues to outpace deposit growth, creating near-term pressures on net interest margins (NIM) and fund deployment. The bank noted that the substantial inflows mobilised under the RBI’s concessional swap window will take time to be fully utilised through lending or other avenues. While the additional liquidity strengthens the system’s overall funding position, the lag in deployment could temporarily impact margins as banks manage the surplus. SBI highlighted that responsible deployment is expected, avoiding abrupt lending spikes. The development provides better visibility on liquidity but underscores the challenge of matching strong credit demand with the pace of deposit accretion in the near term. **Top stocks in the banking industry:** HDFC Bank, ICICI Bank, and Axis Bank.