CHENNAI: Public sector lender Bank of India aims to raise $2 billion through Foreign Currency Non-Resident (Bank) Deposits (FCNR(B)). The move comes on the heels of the Reserve Bank of India withdrawing the interest rate cap on new FCNR(B) deposits with maturities of three to five years until September 30, 2026.
The bank has seen a surge in FCNR(B) deposits over the last 25 days following the RBI’s move.“So far, we have raised $140 million between June 15 and July 9. We plan to raise about $2 billion by September this year. We already have a pipeline of $1 billion,” Binod Kumar, MD and CEO of Indian Bank, said here on Friday. The inflow target exceeds four times the bank’s FCNR(B) deposit mobilization in FY2026, when it raised $457 million.The bank has revised its FCNR(B) deposit rate to 6% from 5.5%. Pointing out that the proposed mobilization of $2 billion through FCNR(B) deposits would be among the highest for the bank under the scheme, he said the annual return would be around 13%-14%. Meanwhile, Indian Bank recorded a 10% rise in its net profit to Rs 3,273 crore in the first quarter from Rs 2,973 crore in the year-ago period, driven by higher return on advances and strong growth in net interest income, among others.