State Bank of India (SBI) has mobilised nearly $6 billion in Foreign Currency Non-Resident (Bank) or FCNR(B) deposits and aims to increase this to $10 billion by the end of September, SBI Chairman CS Setty said. The bank is seeing stronger inflows from the UAE compared to the UK and US, according to bfsi.economictimes.indiatimes.com.
Setty highlighted that despite the bank's efforts, it has not raised FCNR(B) deposit rates recently and ruled out any immediate rate hikes. The bank's strategy focuses on attracting deposits through competitive offerings and leveraging strong demand from non-resident Indians, particularly in the Middle East. This approach has helped SBI accumulate a substantial portion of its target ahead of the September deadline.
FCNR(B) deposits are an important source of foreign currency funding for Indian banks, providing stability amid fluctuating currency markets. SBI's target to raise $10 billion is significant in the context of increasing competition among Indian banks to attract foreign currency deposits. The bank's ability to draw more deposits from the UAE reflects shifting dynamics in the diaspora's investment preferences, which could influence future deposit trends across the sector.
SBI's FCNR(B) deposit mobilisation efforts are set to continue through September, with the bank aiming to close the gap to its $10 billion target. The bank's performance in this segment will be closely watched as it impacts foreign currency liquidity and overall banking sector stability in India.