Bank of India raises $2.2 billion via FCNR(B): CEO

State-owned lender Bank of India has mobilised USD 2.2 billion (around Rs 20,000 crore) through FCNR(B) deposits, which will largely replace bulk deposits and provide liquidity sufficient to meet about three months of the bank’s lending needs, a senior bank official said on Friday.

The liquidity garnered through FCNR(B) deposits will help the bank meet its lending requirements for roughly one quarter, while reducing its reliance on bulk deposits, the official said.

“We have mobilised USD 2.2 billion deposits through FCNR (B) scheme, which translates to roughly around Rs 20,000 crore, which will replace the bulk deposits. The liquidity garnered through FCNR (B) will take care of just one quarter lending needs,” said Rajneesh Karnatak, Managing Director and Chief Executive Officer of the Bank of India, on the sidelines of the Global Fintech Fest 2026.

The bank had mobilised the funds under the special FCNR(B) deposit mobilisation initiative announced by the Reserve Bank of India (RBI).

The mobilisation assumes significance as banks are looking to strengthen their liquidity position and diversify their deposit base amid credit demand.

The funds raised through FCNR(B) deposits will provide an additional source of stable foreign-currency funding for the bank and support its lending operations.

Karnatak said the bank is unlikely to revise its credit growth target despite the huge surplus liquidity in the banking system caused by the mobilisation of the FCNR (B) deposit.

“The bank has a credit growth target of 15-17 per cent for the entire year, and we are going to stick with it,” Karnatak told PTI.

Liquidity in the banking system surged sharply after heavy mobilisation of FCNR (B) deposits by banks, as the mobilisation brought foreign currency into the system, while subsequent swaps with the RBI provided rupee liquidity to banks.

Besides FCNR(B) inflows, month-end Government expenditure, including payments toward salaries and pensions, also added to liquidity in the banking system.

Currently, liquidity in the banking system is estimated to be in surplus of around Rs 10.43 lakh crore as on September 10, according to the RBI data.