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Informist, Tuesday, Aug. 11, 2026

 

By Sagar Sen and Pratiksha

 

MUMBAI – So far, Canara Bank has raised $1.7 billion through foreign currency non-resident (bank) deposits under the special swap facility offered by the Reserve Bank of India, a senior bank official said Tuesday. Around the end of last month, the state-owned bank had mobilised $775 million through FCNR(B) deposits, its Managing Director and Chief Executive Officer Brajesh Kumar Singh said on Jul. 27. In total, the public sector bank aims to attract almost $2.3 billion-$2.5 billion through FCNR(B) deposits, external commercial borrowing and overseas foreign currency borrowings. 

 

On Jun. 8, the Reserve Bank of India unveiled a facility under which it would bear the full hedging costs for banks raising fresh three- to five-year FCNR(B) deposits until Sept. 30. Following this, Canara Bank raised its interest rates on FCNR(B) deposits for tenures of three to four years by up to 280 basis points to 6.50%. The bank also raised interest rates on FCNR(B) deposits for tenures of four to five years by 100 bps to 6.50%.

 

Currently, Canara Bank is not focussing on raising overseas funds through external commercial borrowings under the central bank's special swap facility, the official said. "We are focusing on FCNR(B) deposits right now," the official said. "The window for ECB (external commercial borrowing) is open till December."

 

The swap facility for external commercial borrowings and overseas foreign currency borrowing will remain open up to Jan. 15, 2027, for eligible external commercial borrowings drawdowns made and overseas foreign currency borrowing flows received up to Dec. 31. 

 

The Bengalauru-based bank's net profit rose over 2% on year and nearly 8% on quarter to INR 48.56 billion in the June quarter. On Tuesday, shares of the bank closed 1% higher from the previous close at INR 130.30 on the National Stock Exchange.  End

 

US$1 = INR 95.44

 

Edited by Avishek Dutta

 

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