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Informist, Tuesday, Aug. 11, 2026

 

By Sagar Sen and Pratiksha

 

MUMBAI – Tamilnad Mercantile Bank has so far raised $20 million 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 private-sector bank had raised $10 million through FCNR(B) deposits, its Managing Director and Chief Executive Officer Salee Sukumaran Nair had said. The lender aims to raise $50 million through FCNR(B) deposits by the end of September. 

 

The central bank had in June announced a swap facility to cover 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. As per latest available data, the RBI's measures to garner inflows through FCNR(B) deposits had attracted $36.73 billion from Jun. 8 till Jul. 31. 

 

Tamilnad Mercantile Bank is also planning to partner with foreign banks that do not have a presence in India to attract more FCNR(B) deposits, the official said. "We have initiated talks with some foreign and large banks to tap their customers. It is still in the initial stage and will take some time to materialise," the official said. The bank is also evaluating overseas operations in some markets, including Malaysia, Singapore and Dubai, the official said. 

 

The bank's net profit rose 35% on year to INR 4.12 billion in the June quarter. Tuesday, the bank's shares ended at INR 867 on the National Stock Exchange, down 2.6% from the previous close. End

 

US$1 = INR 95.44

 

Edited by Saji George Titus

 

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