PNB Raises $419 Million in FCNR(B) Deposits, Eyes $2.5 Billion Milestone
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Punjab National Bank (PNB) has mobilised $419 million in Foreign Currency Non-Resident (Bank) [FCNR(B)] deposits, moving steadily towards its ambitious target of $2.5 billion, according to the bank’s Executive Director. The strong response reflects growing interest from non-resident Indians (NRIs) following the Reserve Bank of India’s measures aimed at encouraging foreign currency inflows into the banking system.
The mobilisation is expected to strengthen PNB’s foreign currency resources while supporting the bank’s overall funding position.
RBI Measures Boost NRI Deposit Inflows
The RBI has introduced several initiatives to encourage banks to attract FCNR(B) deposits, helping lenders raise overseas funds and improve foreign currency liquidity. These deposits provide banks with a stable source of foreign currency funding while offering NRIs an opportunity to earn competitive returns on their savings.
PNB’s progress indicates positive traction in attracting NRI deposits, with the bank confident of achieving its $2.5 billion mobilisation target in the coming months.
Foreign Currency Deposits Strengthen Banking Liquidity
FCNR(B) deposits play an important role in strengthening banks’ balance sheets and enhancing foreign exchange liquidity. Increased inflows can also support credit expansion, improve funding diversification, and contribute to overall financial stability.
Industry experts believe that if favourable interest rates and supportive regulatory measures continue, Indian banks could witness stronger NRI deposit inflows, providing an additional source of stable funding amid sustained credit demand.