More Stories

Informist, Monday, Aug. 10, 2026

 

--UCO Bank official:Offering leverage on FCNR(B) deposits via GIFT IFSC unit

--CONTEXT: UCO Bank launched operations in GIFT IFSC unit Mon

--UCO Bank official: May tap medium-term note plan to offer FCNR(B) leverage

--UCO Bk official: Plan $300 mln-$400 mln in syndicated loans via GIFT unit

 

By Aaryan Khanna 

 

NEW DELHI – UCO Bank Ltd. is offering leverage on foreign currency non-resident (banks) deposits through its newly opened branch at the Gujarat International Finance Tec-City in Gandhinagar, according to an official aware of the development. The lender Monday began operations in its International Financial Services Centre Banking Unit, according to its social media handles.

 

The bank did not have any leverage product in place, Managing Director and Chief Executive Officer Rajendra Kumar Saboo had said in a press conference after the bank's June quarter earnings on Jul. 22. The Reserve Bank of India's special scheme, where the central bank is bearing the hedging cost on FCNR(B) deposits of three-to-five years created until Sept. 30, allows banks to lend to customers depositing money in these accounts. Leverage allows customers greater returns while maximising the deposit accretion for the bank. 

 

"We are now offering leveraged products through GIFT City, which should help FCNR(B) deposits rise to around $250 million," the official said. "We may also tap the medium-term note programme, subject to board approval this week."

 

The lender had planned to open the GIFT City unit within a month from Jul. 22 after getting the RBI's nod to set up the unit in September, Saboo had said. UCO Bank is looking to raise up to $500 million through FCNR(B) deposits and overseas foreign currency borrowings until the RBI's special schemes end, he had said.

 

According to data released by the government, UCO Bank's outstanding FCNR(B) deposits rose to $125.58 million on Jul. 30 from $18.17 million as on Jun. 5, just before the special scheme was launched. The state-owned bank is also targetting $300 million-400 million in syndicated loans through the new branch, the official said, without specifying a timeline for the loan activity.

 

In the June quarter, the Kolkata-based lender reported an 8% on-year rise in its net profit to INR 6.56 billion. The bank's net interest income for the June quarter was up almost 17% on year at INR 28.08 billion. At 1318 IST, its shares were down 0.9% at INR 26.15 on the National Stock Exchange.  End 

 

US$1 = INR 95.25

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

 

Edited by Akul Nishant Akhoury

 

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

 

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd. by NSE Data & Analytics Ltd., a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt. Ltd.

 

Informist Media Tel +91 (11) 4220-1000

Send comments to feedback@informistmedia.com

 

© Informist Media Pvt. Ltd. 2026. All rights reserved.