RBL Bank expects to put most FCNR(B) funds to profitable use in 2-3 years

RBL Bank Ltd’s net interest margin (NIM) is likely to come under pressure in the December quarter, after the lender raised about ₹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…