RBIs FCNR(B) and ECB swap windows aim to boost liquidity, stabilise the rupee and ease funding costs for banks. Attractive returns for NRIs and lower hedging costs for lenders create a win-win. Strong inflows could support credit growth, margins and offset persistent FPI outflows from Indian banking stocks.

New RBI measures aim to make overseas borrowing cheaper for banks. External commercial borrowing costs may drop by up to 2.50 percent. This will help banks raise funds at lower…

The Reserve Bank of India's recent measures to encourage overseas fund raising could reduce banks' borrowing costs through the external commercial borrowing (ECB) route by 2-2.5…