India’s major private banks are not sharing specific Foreign Currency Non-Resident (FCNR) deposit figures despite an RBI drive to boost overseas capital. While public sector banks have disclosed collection targets, private lenders say they are still in the middle of gathering these funds. The slow start is attributed to initial regulatory uncertainty and shifts in international banking rules.
India’s leading private sector banks are keeping their Foreign Currency Non-Resident (FCNR) deposit collection numbers private, even as the Reserve Bank of India (RBI) works to attract more foreign currency into the banking system. Unlike their counterparts in the public sector, which have been open about their collection progress and goals, institutions like HDFC Bank, ICICI Bank, and Axis Bank have avoided sharing specific data during recent investor discussions.
Private Sector Strategy and Disclosure
The management at HDFC Bank noted they have successfully raised a significant amount of capital through the scheme. However, they opted not to release exact figures, suggesting that they would share those details once the mobilization phase is complete. The bank mentioned that interest rates above 6% have been attractive to Non-Resident Indian (NRI) customers, and they are utilizing both direct deposit channels and international partnerships to reach them.
At ICICI Bank, leadership pointed out that the process only gained momentum after the RBI provided necessary operational clarity late in June. Consequently, the bank views the second quarter as the period where the actual impact of these efforts will be more visible. Axis Bank also reported healthy interest from NRI clients. Their management emphasized that while this is a valuable opportunity to build deposit strength, they are focused on a measured, strategic approach to collection throughout the quarter rather than chasing immediate volume targets.
Public Sector Banks Lead in Disclosure
Public sector banks have taken a different path, providing clearer targets and updates. For instance, Punjab National Bank has publicly reported collecting $419 million, with a broader goal of reaching $2.5 billion. Union Bank of India and Indian Bank have also outlined clear expectations, each targeting collections between $1.5 billion and $2 billion. Some, like the Bank of Maharashtra, have actively increased their interest rates to 6.60% to remain competitive in drawing these funds.
Market Context and Risks
While the industry initially projected potential inflows of up to $40 billion by the September 30 deadline, current market estimates place the actual figure closer to $12 billion to $15 billion. Several factors have contributed to this slower-than-anticipated start. Beyond initial confusion regarding how to handle leverage and the use of GIFT City branches, changes in regulations—such as a circular from the UAE central bank—have created hurdles for banks trying to tap into that specific region. Furthermore, international analysts at Barclays have noted that while inflows have reached between $5 billion and $6 billion, they are unlikely to reach the high levels recorded during the 2013 foreign currency mobilization efforts. The RBI remains engaged with bank leadership, monitoring the data on a daily basis to help facilitate the program.