New Delhi: Bank of India (BOI) has mobilised USD 2.2 billion, or around ₹20,000 crore, through foreign currency deposits, providing the state-owned lender with additional liquidity to support its lending requirements while reducing dependence on bulk deposits.
Bank of India Managing Director and Chief Executive Officer Rajneesh Karnatak said the funds were raised under the Reserve Bank of India’s special Foreign Currency Non-Resident (Banks), or FCNR(B), deposit mobilisation initiative.
Karnatak made the remarks on the sidelines of the Global FinTech Fest 2026, saying the liquidity raised through FCNR(B) deposits would largely replace bulk funding.
Bank of India Mobilises USD 2.2 Billion Through FCNR(B) Deposits
The bank has raised approximately USD 2.2 billion, equivalent to around ₹20,000 crore, through FCNR(B) deposits.
According to Karnatak, the additional liquidity will provide funding support for roughly three months of lending requirements.
Key points include:
- USD 2.2 billion mobilised through FCNR(B) deposits
- Equivalent to around ₹20,000 crore
- Funds expected to largely replace bulk funding
- Liquidity will cover roughly one quarter of lending needs
- Mobilisation will help diversify the bank’s deposit base
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FCNR(B) Funds to Reduce Dependence on Bulk Deposits
The mobilisation comes at a time when banks are looking to diversify their sources of deposits and secure stable funding to meet credit demand.
Karnatak said the liquidity garnered through FCNR(B) deposits would take care of about one quarter of the bank’s lending needs.
The move is expected to help Bank of India reduce its dependence on bulk deposits while providing additional liquidity to support its lending operations.
Bank of India Retains 15–17% Credit Growth Target
Despite the additional funding and the sharp increase in banking system liquidity, Bank of India has retained its existing credit growth guidance for the financial year.
Karnatak said the bank continues to target 15–17% credit growth for the full year.
The lender intends to maintain this target despite the additional liquidity available through the FCNR(B) mobilisation.
Banking System Liquidity Surplus Crosses ₹10 Lakh Crore
The mobilisation of FCNR(B) deposits has contributed to a significant increase in liquidity in the banking system.
Foreign currency brought into the banking system through these deposits was subsequently swapped with the RBI, providing banks with additional rupee liquidity.
Other factors, including month-end government spending on salaries and pensions, also contributed to the liquidity surplus.
According to RBI data, banking system liquidity was estimated to be in surplus of around ₹10.43 lakh crore as of September 10.
About Bank of India
Bank of India (BOI) is a leading public sector bank in India, offering a wide range of banking and financial services to retail, corporate, MSME and institutional customers. The bank has a broad domestic and international presence and focuses on expanding digital banking, improving customer services and supporting economic growth through credit delivery.
