Canara Bank has successfully mobilised ₹100 crore through Foreign Currency Non-Resident (Bank) deposits and is now aiming to raise a total of ₹2,000 crore by September, reflecting its aggressive push to strengthen foreign currency funding and expand its global depositor base. The initiative is part of the bank’s broader strategy to diversify its liability profile and tap into overseas Indian savings amid evolving global interest rate conditions.
The FCNR(B) deposit scheme allows non-resident Indians to park foreign currency funds in Indian banks, providing stability in funding while reducing exposure to domestic liquidity fluctuations. Canara Bank’s latest mobilisation highlights its ability to attract overseas deposits and signals growing confidence among non-resident customers in the institution’s financial strength and stability.
Bank officials indicated that the fundraising effort is aligned with the lender’s strategy to optimise its cost of funds while supporting credit growth in key sectors of the economy. By increasing its foreign currency deposit base, the bank aims to improve balance sheet resilience and manage currency risk more effectively, especially in a dynamic global financial environment.
The move also comes at a time when Indian banks are increasingly looking at international sources of funding to supplement domestic deposits, as credit demand continues to remain strong across retail, corporate, and infrastructure segments. Analysts note that successful mobilisation of FCNR(B) deposits can help banks maintain liquidity buffers while supporting lending growth without putting pressure on domestic deposit rates.
If Canara Bank achieves its ₹2,000 crore target, it would mark a significant step in strengthening its international funding operations. Market participants will closely watch the pace of mobilisation in the coming months, as it may reflect broader trends in overseas investor sentiment toward Indian banking assets and the country’s financial system overall.
