Bank of India raises USD 2.2 billion in FCNR(B) deposits, retains lending target

Funds worth around Rs 20,000 crore will largely replace bulk deposits and cover roughly a quarter’s lending needs, says MD and CEO Rajneesh Karnatak

Bank of India raises USD 2.2 billion in FCNR(B) deposits, retains lending targetFile

Published on:

11 Sep 2026, 3:58 pm

New Delhi: Bank of India (BOI) has mobilised USD 2.2 billion, or around Rs 20,000 crore, through foreign currency deposits, providing liquidity to meet roughly three months of lending requirements while reducing its dependence on bulk deposits.

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The state-owned lender raised the funds under the Reserve Bank of India’s special Foreign Currency Non-Resident (Banks), or FCNR(B), deposit mobilisation initiative, Managing Director and Chief Executive Officer Rajneesh Karnatak said on Friday.

Speaking on the sidelines of the Global Fintech Fest 2026, Karnatak said the deposits would largely replace bulk funding.

“The liquidity garnered through FCNR(B) will take care of just one quarter lending needs,” he said.

Credit growth guidance unchanged

Despite the additional funding and a sharp rise in banking system liquidity, Bank of India will retain its full-year credit growth target.

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

The mobilisation comes as banks seek to diversify their deposit base and secure funding to support credit demand.

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RBI’s special FCNR window pulls in record $127 billion, nearly five times 2013 mobilisation

System liquidity surplus tops Rs 10 lakh crore

Banking system liquidity has risen sharply following substantial FCNR(B) deposit mobilisation. The deposits brought foreign currency into the system, while subsequent swaps with the RBI provided banks with rupee liquidity.

Month-end government spending, including salary and pension payments, also contributed to the surplus.

Banking system liquidity was estimated to be in surplus of around Rs 10.43 lakh crore as of September 10, according to RBI data.

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