Bank stocks rise as $127 billion FCNR inflows boost liquidity outlook

Bank stocks rose Thursday after RBI data showed banks raised $127.2 billion through FCNR(B) deposits, boosting liquidity and credit growth expectations. RBL Bank mobilized $3.4 billion, deploying $1.08 billion as loans, while IDFC First Bank raised $3.57 billion and ICICI Bank collected $17.88 billion. RBL shares jumped 4.80 percent, with other major lenders posting gains. The strong inflows prompted RBI to close the window a month early. Analysts expect a 150-basis-point credit growth increase to 15.5-16 percent for FY27, with improved liquidity ahead of the festive season potentially keeping rates lower.