ICICI Bank and foreign lenders emerged as major winners from the FCNR(B) deposit surge, with aggressive rates and overseas balance sheets helping capture inflows.

FCNR(B) Deposit Boom |

Mumbai: The sharp surge in FCNR(B) deposits has created clear winners in India’s banking sector, with ICICI Bank and several foreign lenders capturing a sizeable share of the foreign currency inflows.

Brokerage reports from Macquarie, Jefferies, Motilal Oswal Financial Services (MOSL) and BofA Securities suggest that banks offering competitive interest rates and effectively using their overseas balance sheets gained the most.

The scheme attracted total inflows of around $136.4 billion, equivalent to approximately Rs 12.96 lakh crore.

ICICI Bank Leads Among Private Banks

ICICI Bank emerged as a major beneficiary among large private-sector lenders. Macquarie estimates that the bank mobilised $17.88 billion, or around Rs 1.70 lakh crore, giving it an estimated 18% market share.

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MOSL puts ICICI Bank’s share at around 14%, still roughly twice its normal deposit-market presence.

Macquarie estimates that more than 70% of the mobilisation leverage came from ICICI Bank’s own balance sheet, including nearly $9 billion in loans from international branches.

RBL Bank also performed strongly, mobilising around $3.4 billion, or approximately Rs 32,000 crore, according to MOSL.

Foreign Banks Capture Bigger Share

Foreign lenders emerged as major relative winners from the FCNR(B) deposit boom.

Jefferies estimates their share of incremental deposits increased from around 1-2% in early June to 15-30% by the end of July.

HSBC was among the biggest beneficiaries. MOSL estimates it captured around 22% of total inflows, mobilising about $6.1 billion by July 30.

Standard Chartered also secured around 7% of incremental flows, highlighting how foreign banks capitalised on the surge in NRI foreign currency deposits.

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