Eye on FCNR-B deposits: Bank of India plans to raise up to $1 bn via Medium-Term Note programme

On FCNR-B deposits of less than $100 thousand and $100 thousand and above, the bank is offering interest rates ranging from 6.00 per cent to 6.25 per cent and 6.25 per cent to 6.50 per cent depending on the tenor

Bank of India (BoI) is planning to raise up to $1 billion via a Medium-Term Note (MTN) Programme in the backdrop of Non-Resident Indians seeking leverage facilitiesf to place fresh Foreign Currency Non-Resident-Bank (FCNR-B) deposits under the RBI’s limited period concessional swap window.

Between June 5, 2026, and July 30, 2026, the public sector bank mobilised $207.46 million via FCNR-B deposits of 3-5 years tenor, per data shared by the finance ministry in the Lok Sabha.

On FCNR-B deposits of less than $100 thousand and $100 thousand and above, the bank is offering interest rates ranging from 6 per cent to 6.25 per cent and 6.25 per cent to 6.50 per cent, respectively, depending on the tenor.

BoI, in a regulatory filing, said that the aforementioned foreign currency fund raising will be in multiple tranches up to the end of December 2026 through the issuance of 3- to 5-year USD bonds. The issuance of bonds will be conducted through its BOI GIFT (Gujarat International Finance Tec) city branch.

BoI said its Board of Directors is scheduled to meet on August 14, 2026, to consider and approve the raising of foreign currency fund through establishment of a MTN Programme.

During FY26, BoI raised ₹2,500 crore by way of Tier II bonds (Series XVIII) on December 12, 2025. It also mopped up ₹10,000 crore by issue of Long Term Infrastructure Bonds for a tenor of 10 years on December 26, 2025.

Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.

We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.