Mumbai, Oct. 19 -- Major Indian banks have adopted different strategies to deploy funds raised through Foreign Currency Non-Resident Bank (FCNR-B) deposits, resulting in varying impacts on lending margins, according to a Jefferies research report released following the September-quarter earnings announcements.

The brokerage said that deploying these funds in relatively lower-yielding assets has weighed on private banks' margins, but expects a gradual reallocation over the next two quarters to support profitability.

In its equity research report, Jefferies said, "FCNR-B raising were in lower-yielding assets (liquid deposits/ corporate loans) & expect reallocation over 2qtrs to aid margins."

Analysing HDFC Bank, ICICI Bank, Axis Bank and...