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Banks Quiet on NRI Deposit Surge: What's the Hold-Up?
20 Jul
Summary
- Private banks remain tight-lipped about FCNR deposit inflows.
- Public sector banks disclose collections and targets for FCNR deposits.
- The FCNR deposit scheme is valid until September 30.
India's largest private banks, including HDFC Bank, ICICI Bank, and Axis Bank, have refrained from disclosing specific figures for their Foreign Currency Non-Resident (B) deposit (FCNR(B)) collections. These institutions, however, report significant interest from Non-Resident Indians (NRIs) in the scheme, which offers attractive interest rates and runs until September 30. Market participants estimate potential inflows between $12 billion and $15 billion so far.
Conversely, public sector banks have been more forthcoming. Union Bank of India aims for $1.5-2 billion, having already raised $106 million. Punjab National Bank has received $419 million and targets $2.5 billion. Indian Bank expects $1.5-2 billion, while Central Bank of India targets $400 million. These disclosures stand in contrast to the guarded communication from private lenders, potentially due to operational clarifications and tax concerns that emerged earlier in July.
