South Indian Bank Targets $1 Billion NRI Deposit Inflow

South Indian Bank (SIB) has set an ambitious goal to attract around $1 billion in fresh FCNR(B) deposits by the end of September 2026. This initiative is significantly bolstered by a recent directive from the Reserve Bank of India (RBI) that assumes the full cost of hedging for these deposits. This policy shift enables banks like SIB to offer substantially higher interest rates, making them more competitive.

Executive Director Dolphy Jose highlighted that SIB is actively engaging its Non-Resident Indian (NRI) customer base to achieve this target. The bank is also in discussions with several foreign banks to facilitate loan arrangements for NRI clients, who can then deposit these funds as FCNR(B) with SIB. As of March-end 2026, NRI deposits represented approximately 29% of SIB's total deposits, amounting to ₹1,23,346 crore.