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Informist, Wednesday, Aug. 12, 2026

 

MUMBAI – Indian Bank has raised $1.3 billion through foreign currency non-resident (bank) deposits so far under the special swap facility offered by the Reserve Bank of India, the bank's Managing Director and Chief Executive Officer Binod Kumar said on the sidelines of the Financial Institution Benchmarking and Calibration 2026 seminar here. The state-owned bank aims to mobilise around $2.0 billion through FCNR(B) deposits by end of September. 

 

As on Jul. 10, the lender had mobilised around $150 mln under the RBI's special FCNR(B) deposit window, with Kumar then saying the bank had a pipeline of nearly $1 billion. On Jun. 8, the RBI 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, Indian Bank had launched Special FCNR(B) Deposit scheme, under which interest rate on FCNR dollar-denominated bank deposits of up to $1 million for three year to five year tenures is at 6.00-6.50%. The lender's FCNR(B) deposits of above $1 million and less than $3 million for three-year to five-year tenures attract a rate of 5.60-6.10%. Deposits of above $3 million attract 5.50-6.00% for three to five-year tenures. 

 

Kumar said the lender is currently not focusing on raising overseas funds through external commercial borrowings under the central bank's special swap facility. "We are doing FCNR(B) deposits right now. The ECB facility is till December," he said. 

 

The RBI's 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. 

 

Indian Bank reported over 10% on-year growth in its net profit for the June quarter at INR 32.73 billion. At 1430 IST, Indian Bank's shares were at INR 888 on the National Stock Exchange, up 1.4% from the previous close.  End

 

US$1 = INR 95.32

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

 

Reported by Pratiksha

Edited by Avishek Dutta

 

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