ICICI Bank Mobilises $17.88 Billion Under RBI’s FCNR Deposit Scheme

ICICI Bank has mobilised about $17.88 billion through the Reserve Bank of India's foreign currency non-resident (FCNR) deposits scheme through August 31, the private lender stated on Wednesday.

According to the bank, loans provided by international branches and subsidiaries against these deposits stood at $9 billion. Additionally, the lender has issued $3.63 billion in guarantees to other banks for loans backed by the deposits.

The development follows a series of measures introduced by the Reserve Bank of India in June. The central bank implemented foreign exchange measures, including concessional swap facilities, designed to boost overseas borrowing by state-run firms and attract foreign currency non-resident deposits.

Data indicates that the RBI's foreign exchange forward position climbed to an all-time high of $136.7 billion in July. This increase was driven by a surge in overseas deposits following the central bank's initiatives to attract dollar inflows and support the rupee.

"The significant mobilisation of $17.88 billion by ICICI Bank under the RBI's FCNR deposit scheme highlights the effectiveness of recent central bank measures in driving foreign currency inflows. With $9 billion deployed in loans and over $3.63 billion in guarantees, such liquidity management plays a critical role in supporting currency stability and expanding international operations for major financial institutions in the current economic environment." — Dr. Shishir Gupta, Founder & CEO, StartupLanes