Finsamudra Desk3mo ago

PNB mobilizes $419 million in FCNR(B) deposits, targets $2.5 billion by September 2026

The bank's foreign currency deposit push reflects a broader shift among Indian lenders to diversify funding sources amid global market volatility.

$419 millionFCNR(B) deposits mobilized by PNB

Banking1 min read

Punjab National Bank has mobilized $419 million in FCNR(B) deposits and is on track to achieve its $2.5 billion target by September 30, 2026. — Image: Finsamudra LinkedIn archive

$2.5 billion by Sept 30, 2026Target deadline

Punjab National Bank has raised $419 million through FCNR(B) deposits so far, and is on track to hit its $2.5 billion target by September 30, 2026.

FCNR(B) (Foreign Currency Non-Resident Bank) deposits let NRIs park foreign currency savings in Indian banks without exchange rate risk, since both the deposit and repayment happen in the same foreign currency.

For banks, these deposits aren't just liabilities on the balance sheet—they're a strategic source of foreign currency funding that supports overseas lending and trade finance.

The push comes as global markets face uncertainty and capital flows turn more volatile, prompting banks to actively shore up their foreign currency liquidity.

This aligns with the RBI's special FCNR(B) deposit window, a regulatory mechanism designed to encourage banks to attract more NRI deposits.

Why it matters

FCNR(B) inflows strengthen a bank's foreign currency liquidity and funding diversification—both of which underpin its capacity to extend overseas lending and trade finance. For DSAs and connectors working with banks on cross-border or trade-finance-linked products, a lender's foreign currency funding position can influence pricing and appetite for such deals.

The RBI's special FCNR(B) window signals regulatory intent to channel NRI capital into the banking system, which could make foreign currency deposit mobilization a more visible growth lever for banks—independent of loan book expansion or quarterly profit numbers.

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