Central Bank of India mobilises $250 million under FCNR (B) window: CEO

State-owned lender Central Bank of India has mobilised $250 million under the FCNR-B window introduced by the Reserve Bank of India (RBI), a senior bank official said on Wednesday.

Central Bank of India has surpassed the $100 million target set for July, garnering $250 million.

“We have surpassed the July target set internally, and mobilised $250 million under FCNR — B,” Kalyan Kumar, Managing Director and Chief Executive Officer of Central Bank of India, said on the sidelines of the annual FIBAC event here.

He said that the Central Bank of India has raised funds through its GIFT City branch and has set a target of $400 million by September end, the closure date fixed by the RBI for the special swap window.

During the post-June quarter earnings conference, Kumar had said that the Bank expects to accumulate a total of $400 million.

A senior executive of the Bank had earlier said that it is looking to raise the deposits from the Middle East and Australian markets.

The Bank is currently offering 6.50 per cent on three-year deposits, and 6.60 per cent on the five-year deposits, the executive said.

The RBI had introduced the special FCNR-B window during the June monetary policy committee (MPC) meeting, including bearing the cost of currency hedging, to increase foreign capital inflows and bolster India’s external position.

According to the RBI, Foreign Currency Non-Resident (Bank) or FCNR(B) deposits account for the bulk of the inflows at USD 36.725 billion, followed by Overseas Foreign Currency Borrowings (OFCBs) at USD 2.575 billion and External Commercial Borrowings (ECBs) at USD 1.516 billion.

The facility, operational since June 8, was announced as part of a package of measures unveiled during the June monetary policy review to strengthen the balance of payments, boost foreign exchange reserves and encourage capital inflows. The RBI is also bearing the cost of currency hedging under the scheme.

Based on data received from authorised dealer banks, total forex inflows mobilised under the facility stood at USD 40.816 billion as of July 31.

The swap facility for fresh FCNR(B) deposits will remain open until September 30, 2026, while the window for OFCBs and ECBs will continue till December 31, 2026.

Meanwhile, Kumar said that the Bank’s current IT capex stood at 8-9 per cent of the total spend and the Bank’s FY27 IT capex is Rs 1,000 crore.