The flow of foreign currency non-resident (Bank), or FCNR(B), deposits through the Reserve Bank of India’s special swap window is expected to rejig the funding profile of banks by lowering their cost of deposits and easing pressure on net interest margins (NIMs). While some high-cost deposits may be allowed to run off, some could be repriced at lower rates. Improved liquidity will also give banks the option to expand their loan books. Banks weigh growth against deposit costs