Bank of India Mobilises $2.4 Billion Through FCNR(B) Deposits
Bank of India has mobilised nearly $2.4 billion through Foreign Currency Non-Resident (Bank), or FCNR(B), deposits under the Reserve Bank of India’s concessional swap window. The state-owned lender plans to use the relatively cheaper funds to retire high-cost deposits and borrowings, while deploying a portion into higher-yielding assets, according to a source.
The bank expects to deploy the funds by the end of the third quarter and may avoid tapping the certificate of deposit market over the next few months due to the cheaper FCNR(B) funding. Meanwhile, Bank of India is conducting roadshows with investors to raise up to $1 billion through US dollar-denominated bonds, with the issuance dependent on favourable market yields.
Other state-owned lenders have also attracted substantial foreign-currency deposits under the RBI scheme. Indian Bank has raised $2.3 billion, while Central Bank of India has mobilised $925 million. Overall, banks raised $127.2 billion through FCNR(B) deposits under the facility by August 31, while total inflows through FCNR(B), overseas foreign-currency borrowings and external commercial borrowings reached $136.4 billion, according to provisional RBI data.
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