ICICI Bank, Kotak Mahindra Bank, Axis Bank and HDFC Bank each raised over $1 billion, while HSBC emerged as the largest overall mobiliser with $6.14 billion.
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Private sector banks (PVBs) have emerged ahead of public sector banks (PSBs) in mobilising Foreign Currency Non-Resident Bank (FCNR(B)) deposits with maturities of 3-5 years under the Reserve Bank of India’s limited-period US Dollar-Rupee forex swap facility, according to data tabled in the Lok Sabha.Foreign banks, led by HSBC and Standard Chartered Bank (SCB), collectively mobilised nearly the same amount as all 12 PSBs combined during the June 5-July 30, 2026 period.Among the 20 private sector banks, four lenders, ICICI Bank, Kotak Mahindra Bank (KMB), Axis Bank and HDFC Bank, mobilised more than $1 billion each through FCNR(B) deposits. In contrast, among the 12 PSBs, only State Bank of India (SBI) and Bank of Baroda (BoB) crossed the $1 billion mark.Across the universe of 42 participating banks, HSBC, SBI and ICICI Bank stood out as the largest mobilisers, attracting $6.14 billion, $4.12 billion and $3.69 billion, respectively, from non-resident Indians (NRIs) into FCNR(B) deposits.Private sector banks collectively garnered $10.73 billion during the period, with six lenders accounting for the bulk of the inflows: ICICI Bank ($3.69 billion), Kotak Mahindra Bank ($1.65 billion), Axis Bank ($1.58 billion), HDFC Bank ($1.40 billion), YES Bank ($810.39 million) and RBL Bank ($556.68 million).PSBs together mobilised $8.84 billion. However, only five lenders raised more than $500 million: SBI ($4.12 billion), BoB ($1.04 billion), Punjab National Bank ($969.63 million), Canara Bank ($933.47 million) and Indian Bank ($835.87 million).Among the 12 foreign banks participating in the scheme, HSBC dominated with $6.14 billion, while SCB was the only other lender to cross the $1 billion threshold, mobilising $1.85 billion.According to industry experts, the stronger performance of select private sector and foreign banks, compared with most PSBs, reflects their ability to offer higher leverage and superior overall returns to depositors. These returns are calculated as the interest earned on deposits after adjusting for the cost of leverage.Large private banks such as HDFC Bank and ICICI Bank have also stepped up their FCNR(B) mobilisation efforts by raising deposit rates by 25 basis points from 6 per cent to 6.25 per cent.Replying to questions on FCNR(B) deposits in the Lok Sabha, Minister of State for Finance Pankaj Chaudhary said the RBI’s US Dollar-Rupee forex swap facility for fresh FCNR(B) deposits is aimed at attracting stable foreign currency inflows, strengthening India’s balance of payments and easing pressure on the rupee.He noted that fresh FCNR(B) deposits mobilised by banks will be swapped with the RBI, boosting foreign exchange reserves and banking system liquidity in the first leg of the transaction, while the process will be reversed upon maturity.Chaudhary added that the eventual increase in foreign exchange reserves and banking system liquidity will depend on the total amount of foreign currency mobilised under the forex swap facility during the scheme period.Published on August 3, 2026
