More Stories

Informist, Thursday, Aug. 13, 2026

 

By Pratiksha and J. Navya Sruthi

 

MUMBAI – Central Bank of India is likely to surpass its target of raising $400 million through foreign currency non-resident (bank) deposits under the special swap facility offered by the Reserve Bank of India, and may be able to mobilise around $600 million through the route, a senior bank official said. On Jul. 17, the state-owned bank's Managing Director and Chief Executive Officer Kalyan Kumar said the bank had set a target of raising $400 million through FCNR(B) deposits by Sept. 30. 

 

So far, the lender has raised $250 million through FCNR(B) deposits under the RBI's special swap window. "We are getting good traction on the FCNR(B) side and I think we may be able to, if not double, surpass the $400 million target. I am looking at $600 million total FCNR(B) deposits," the official said. 

 

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. The swap facility, which came into effect on Jun. 8, will remain open till Oct. 16 for deposits mobilised between Jun. 8 and Sept. 30. Following the announcement of the facility, Central Bank of India raised its rates on three- to four-year FCNR(B) deposits by 50 basis points to 6.50% and those on four- to five-year deposits by 55 bps to 6.55%. The bank has raised its FCNR(B) deposit rates on five-year tenure by 60 bps to 6.60%. 

 

Currently, the lender is not planning to raise funds through overseas borrowing under the RBI's concessional swap facility. "As of now, we are concentrating on FCNR (bank deposits) and once this window closes, we will concentrate on ECB (external commercial borrowing)," the official 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. 

 

The official said that the public sector bank has also partnered with foreign banks such as Citi Bank and Bank of America, as well as with some Indian banks with significant presence overseas, to garner FCNR(B) deposits. "We are hoping these overseas tie-ups will help bring in more deposits," the official said. 

 

Central Bank of India's net profit for the June quarter was INR 13.24 billion, up over 13% on year. At 1215 IST, the bank's shares were at INR 31.43 apiece on the National Stock Exchange, up nearly 0.5% from the previous close.  End

 

US$1 = INR 95.42

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

 

Edited by Avishek Dutta

 

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 (22) 6985-4000 

Send comments to feedback@informistmedia.com

 

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