SBI Research report estimates that India could get $65-70 billion in the form of FCNR (B) deposits. The amount raised in 45 days has surpassed the total collection in three months of 2013, with public sector banks leading the way.
New Delhi [भारत]July 27 (ANI): India may now receive in the range of US$65-70 billion by the end of the Foreign Currency Non-Resident (Bank) Deposit Scheme and US$80-85 billion overall, according to a report by SBI Research. The total amount raised so far in 45 days has exceeded the total amount raised in a three-month period in 2013.
SBI Research’s big estimate
“Given the current trend, we believe the total amount raised so far in 45 days has easily surpassed the total amount raised in 3 months in 2013! Overall, we believe India may now receive in the range of US$ 65-70 billion by the end of the FCNR (B) deposit scheme and US$ 80-85 billion overall,” the SBI Research report said.
Public sector banks are at the forefront
The report said that public sector banks were the main drivers in raising this amount. Citing Reserve Bank of India data, the report said USD 17.41 billion of FCNR (B) deposits were mobilized by July 17, 2026. Total deposit inflows as of July 17 reached US$20.72 billion, including US$1.97 billion from Overseas Foreign Currency Borrowings (OFCBs) and US$1.34 billion from External Commercial Borrowings (ECBs). The report noted that total FCNR deposits were expected to reach US$26-28 billion by July 23 alone.
SBI Research has raised its total FCNR forecast to US$ 65-70 billion at the end of the scheme from the earlier estimate of US$ 40-45 billion.
“We also believe that a significant majority of existing FCNR deposits which are set to mature in Aug/Sep’26 will be renewed under the new scheme (attracted by higher interest rates) and will boost FCNR(B) inflows,” the report said.
Big money will also come from countries with tax concessions
“Our initial estimate suggests that US$10 billion is likely to be raised on a conservative basis over and above the base line projections, mostly through economies where tax incentives are available,” the report said.
Increase in foreign currency assets (FCA) also
From June 8 to July 17, foreign currency assets (FCA) increased by US$7.6 billion. Meanwhile, deposits for FCNR (B) flows were recorded at US$ 17.4 billion, possibly indicating that the swap process by banks into the RBI was taking place slowly, accounting for about 44 per cent of the total amount.
“The next FCA reporting for July is for the week ending July 24 and the week ending July 31 and we expect FCA inflows for the next 15-day period (July 17-July 31) to reach USD 10-12 billion based on current trends,” the report said.
“This should lead to the majority of the total FCA increase of USD 17-20 billion (by end-July) post RBI measures being absorbed into RBI’s reserve figures, mainly buoyed by FCNR (B) inflows,” the report said. (ANI)
(Except for the headline, this story has not been edited by Asianetnews Editorial staff and is published from a syndicated feed.)