Foreign-currency deposits weigh on Indian private banks' interest margins

The Economic Times reports that three large Indian private banks saw year-on-year declines in second-quarter net interest margins. Analysts cited the costs and thin lending margins associated with foreign currency non-resident (FCNR) deposits. Axis Bank said the deposits accounted for 11 basis points of its 34-basis-point margin decline; HDFC Bank also cited faster repricing of assets as interest rates fell.