New Delhi, Aug. 12 -- Foreign Currency Non-Resident (FCNR) inflows could boost system deposit growth by ~3 percentage points (ppt) and loan growth by 3.7ppt, raising FY27 loan growth to 16%, while easing money-market rates are likely to benefit weaker-liability-franchise banks and wholesale-funded NBFCs, IIFL Capital said.

Highlighting that FCNR flows are running ahead of expectations, the brokerage noted that banks had mobilised USD 36.7 billion in fresh FCNR deposits as of July 31, surpassing USD 24.5 billion mobilised during the entire 2013 window, which represented 2 per cent of system deposits and 9 per cent of FCA. It stressed, "We expect FCNR flows to add ~3ppt to system deposit gr. (13.5% in FY27E) and 3.7ppt to loan gr. (16.1%)....