Bank of Baroda’s FCNR(B) inflows to replace Rs 18,000 crore of bulk deposits, says MD Debadatta Chand
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Second largest public sector lender Bank of Baroda expects to replace nearly Rs 17,000-18,000 crore rupees of bulk deposits through mobilisation of Foreign Currency Non-Resident (Bank) [FCNR(B)] deposits under the Reserve Bank of India's swap window, with the lender targeting USD 4-5 billion of overseas fundraising across FCNR(B), Medium Term Notes (MTNs) and Overseas Foreign Currency Borrowings (OFCBs). The bank has already mobilised close to USD 700 million through FCNR(B) deposits and expects to cross the USD 1 billion mark by the end of July, with at least USD 2 billion of the overall target expected to come from FCNR(B) deposits alone, Managing Director & CEO Debadatta Chand shared. Advt "We anticipated that we'll be raising something around USD 4 to 5 billion in terms of all the three instruments, FCNR, MTN, and also on the OFCB. As of today on FCNR, we have raised almost close to USD 700 million now. Possibly by month end, we'll be crossing USD 1 billion. In that way, we're quite hopeful of our initial target of raising roughly around USD 4 to 5 billion on the time the window closes," Chand shared. The FCNR(B) mobilisation comes as banks seek to diversify funding sources and reduce dependence on wholesale deposits after the RBI revealed a temporary swap facility to attract foreign currency deposits . According to Chand, the expected FCNR(B) inflows would directly substitute a sizeable portion of the bank's bulk deposits. "We're expecting at least minimum USD 2 billion out of FCNR(B). To the extent of, let's say, Rs 17,000-18,000 crore rupees of positive effect it is going to have on the bulk deposit," he shared. Executive Director Lalit Tyagi shared the bank has already operationalised loans against FCNR(B) deposits for eligible NRIs to improve participation. Chand shared Bank of Baroda has spent the last several years consciously reducing its dependence on wholesale deposits while strengthening granular deposits. Advt As of June 30, 2026, bulk deposits (including certificates of deposit) stood at Rs 3.18 lakh crore rupees, marginally lower than Rs 3.19 lakh crore rupees in March 2026 despite rising 37 per cent year-on-year. Domestic deposits grew 14.7 per cent YoY to Rs 13.82 lakh crore rupees, while global deposits increased 13.8 per cent to Rs 16.34 lakh crore rupees. Retail term deposits rose 8.8 per cent to Rs 5.43 lakh crore rupees, although the domestic CASA ratio moderated to 37.72 per cent from 38.90 per cent in March. Overseas franchise Chand shared Bank of Baroda is underwriting nearly USD 1.5 billion of external commercial borrowings (ECBs) that will eventually flow into India under the RBI's swap framework. Advt "We have almost like in a process of almost giving up to USD 1.5 billion in terms of ECB by tapping resources across the globe, entirely done by Bank of Baroda in terms of underwriting those ECBs. That's the money going to come to India, and our overseas branches are in a position to fund those ECBs for the public sector undertakings as part of the swap window. That again can upsize my targeted USD 4 to 5 billion inflow that can happen to India through Bank of Baroda channels," he shared. The lender also plans to deepen its international footprint as overseas operations continue to outpace domestic growth. Advt "The bank in the last five years has been a success story in terms of repositioning our overseas presence, both in terms of branch networking and also the business there. The growth of overseas would have seen it is growing almost like 15 to 20 percent for last many quarters. There are significant opportunities. We are a big player now in the global syndication market across the globe," Chand shared. He added that the bank intends to increase overseas business as a share of its global book over the next few years. "The overseas book as a percentage of global book is almost like 16-17 percent now. In the foreseeable future, subject to global markets remaining in good shape, I think we can increase it up to 19-20 percent in a couple of years now," he shared. Without naming countries, Chand verified that multiple overseas geographies are under evaluation. "Multiple geographies are under consideration. We cannot outline them at this point of time, but it can be any geography where it makes strategic sense for Bank of Baroda and for the country also to have a presence because India is signing a lot of FTAs now. We are there to capture both the trade flows vis-à-vis India and overseas, and also the capital flow," he shared. The international expansion strategy builds on the bank's already growing overseas business. During the June quarter, international advances increased 23.3 per cent year-on-year to Rs 2.66 lakh crore rupees, while international deposits rose 8.9 per cent to Rs 2.52 lakh crore rupees, contributing to global business of Rs 30.5 lakh crore rupees, up 15.4 per cent from a year earlier.
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Source: BFSI News