Regional conflict-driven curbs weigh on flow: FCNR(B) inflows may miss initial estimates, says HDFC Bank CEO

HDFC Bank CEO Sashidhar Jagdishan said FCNR(B) dollar deposit inflows into India may total around $50-55 billion, falling short of the initial $60-80 billion expectation, as West Asian central banks tighten leverage rules amid regional conflict, curbing counterparty bank limits. Barclays noted early inflows of only about $5-6 billion, with the RBI's special incentive window closing September 30 making a catch-up run rate difficult. HDFC Bank, which mobilised the highest $3.4 billion in the 2013 scheme, has already raised about $750 million via its GIFT City branch to fund leverage of roughly nine times for top NRI customers.