The proceeds of the mortgage will be positioned as a contemporary FCNR(B) deposit at the next rate of interest that banks are at the moment providing for a restricted interval
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VIJAY SONEJI
Specialised foreign-currency banking branches working in GIFT Metropolis have leveraged FCNR (international foreign money non-resident financial institution) B Deposits by disbursing $52 billion as mortgage between July 15 and August 31, mentioned official sources.
“The replace acquired from IBUs (IFSC Banking Unit) as on August 31 confirmed the overall quantity disbursed beneath the scheme is round $52.82 billion in opposition to sanctioned mortgage of $54.02 billion as on August 31, 2026,” a supply mentioned. Additional ECB (exterior business borrowing) disbursed by IBUs totalled to $11.62 billion throughout the interval from April to August.
Based on RBI information, the inflows via the particular international foreign money non-resident financial institution (FCNR-B) deposit have crossed the century mark, in keeping with the Reserve Financial institution of India (RBI), with $127.2 billion coming via the particular concessional swap window. This has additional boosted leverage possibility. Financial institution’s leverage possibility, permitting buyers to borrow as much as 9 instances their deposit. By reinvesting borrowed funds, the financial institution tasks considerably increased annualised yields even after accounting for mortgage prices.
This implies financial institution’s abroad branches as effectively its abroad subsidiaries’ branches may give a mortgage of $9 million on a contemporary deposit of $1 million. The proceeds of the mortgage will be positioned as a contemporary FCNR(B) deposit at the next rate of interest that banks are at the moment providing for a restricted interval. All these imply banks may give greater than $110 billion. Banks’ abroad branches as effectively their abroad subsidiaries branches can prolong loans to NRIs based mostly on the energy of their present/ new FCNR(B) deposits in India.
Revealed on September 2, 2026
