Largest Foreign Office Network BoB to Pick up $3bn in Rupee Dollar Swap Deals

Bank of Baroda aims to mobilize $3 billion in FCNR(B) deposits, leveraging its strong NRI network to capture a chunk of the estimated $45 billion industry-wide inflow sparked by the RBI’s recent forex hedging measures.

Key Points Summary

· Bank of Baroda (BoB) plans to mobilize $3 billion through Foreign Currency Non-Resident (Bank) [FCNR(B)] deposits.

· The target is based on the bank’s 5% market share and its strong presence across major NRI markets worldwide.

· The banking industry is expected to attract $40–45 billion in FCNR(B) deposits under the RBI’s revised scheme.

· On June 5, the Reserve Bank of India (RBI) announced that it would bear the full hedging cost for eligible FCNR(B) deposits to encourage foreign currency inflows.

· The move is part of a broader package aimed at supporting the rupee and strengthening India’s external sector position.

· Banks expect significantly higher inflows due to the RBI’s forex-risk coverage.

· According to Bank of Baroda officials, the current market environment could create a 5–7 times leverage effect, boosting foreign deposit mobilization.

· The scheme is expected to attract more deposits from Non-Resident Indians (NRIs) by allowing banks to offer competitive returns.

[ABS News Service/16.06.2026

Bank of Baroda is targeting to raise $3 billion through Foreign Currency Non-Resident (Bank) [FCNR(B)] deposits after the Reserve Bank of India introduced measures to draw foreign currency inflows and support the rupee, a senior official told FE.

“Considering the bank’s market share of around 5% and its strong overseas presence across key NRI corridors, the bank is targeting mobilisation of FCNR(B) deposits in the range of $3 billion during the scheme period,” the official said.

The expected inflows to the banking industry under the FCNR(B) deposit scheme are estimated to be in the range of $40–45 billion, the official added.

On June 5, the RBI announced covering full hedging cost for FCNR deposits, along with a slew of other measures to attract foreign inflows and support the rupee. With enabling leverage, banks now expect higher inflows compared to earlier estimations.

The official further said that, given the current market environment, including the narrower interest rate differential and availability of alternative investment opportunities, the scheme is expected to generate a leverage effect of approximately 5–7 times.