FCNR[B] mobilisation slow so far–the broad reasons [1] Demand from the US and Australia is muted because investors have access to competing fixed income alternatiaves [2] Tax treatment in the country of residence [3] Compliance requirements [4] Currency exposure [5] Broader portfolio considerations [6] Narrowing India-US yield differential-[7] Spread between Indian and US 3-5 year yields has fallen from roughly 650-800 basis points in 2013 to around 200-220 basis points currently [8] Leverage –most Indian Banks offering between 8 to 12 times while some overseas institutions reportedly provide upto 19 times [9] Banks are optimistic about $ 50 billion mobilisation– News courtesy BL