Mumbai, Oct. 12 -- RBL Bank Ltd's net interest margin (NIM) is likely to come under pressure in the December quarter, after the lender raised about Rs.34,000 crore in foreign currency deposits from non-resident Indians during a temporary Reserve Bank of India (RBI) window, the bank's management said on Monday.

These deposits, known as foreign currency non-resident (bank) or FCNR(B) deposits, cost the bank about 6.75% a year, the management said. Much of the money is currently parked in investments that earn less than the bank's regular loans, and margins will improve only as it is lent out.

"Over a period of two to three years, you'll be seeing that much of it absorbed and introduced into the profitable environment," a senior executive ...