4 days ago
Bank of India Raises $2.2 Billion to Support Lending Needs
Bank of India collected $2.2 billion from special foreign-currency deposits.
This money is worth about Rs 20,000 crore.
The bank says the funds can help pay for about three months of new lending.
The deposits will also reduce the bank’s need to use large bulk deposits.
The Reserve Bank of India created the special deposit initiative.
Banks brought in foreign currency and later received rupee liquidity through swaps with the central bank.
Bank of India still plans to grow its lending by 15-17% this year.
Overall, the banking system had a large surplus of available money on September 10.
Bank of India mobilised $2.2 billion, or about Rs 20,000 crore, through FCNR(B) deposits.
The funds are expected to replace bulk deposits and cover roughly three months of lending needs.
Managing Director and CEO Rajneesh Karnatak said the bank will retain its 15-17% annual credit-growth target.
The deposits were raised under a special FCNR(B) mobilisation initiative announced by the Reserve Bank of India.
Banking-system liquidity reached an estimated surplus of Rs 10.43 lakh crore on September 10, according to Reserve Bank of India data.
- Who
- Bank of India and its Managing Director and Chief Executive Officer Rajneesh Karnatak.
- What
- Bank of India raised $2.2 billion through FCNR(B) deposits to support lending and reduce reliance on bulk deposits.
- Where
- Mumbai, India.
- When
- September 11; the reported banking-system liquidity figure was measured on September 10.
- Why
- To strengthen liquidity, diversify the deposit base, replace bulk deposits and meet lending requirements for roughly one quarter.
Key facts
- Funds raised
- $2.2 billion
- Approximate rupee value
- Rs 20,000 crore
- Expected lending coverage
- About three months, or one quarter
- Credit-growth target
- 15-17% for the full year
- Banking-system liquidity surplus
- Approximately Rs 10.43 lakh crore as of September 10
- Funding mechanism
- FCNR(B) deposits under a special Reserve Bank of India mobilisation initiative
Quotes
Rajneesh Karnatak
Managing Director and Chief Executive Officer of Bank of India
“We have mobilised USD 2.2 billion deposits through FCNR (B) scheme, which translates to roughly around Rs 20,000 crore, which will replace the bulk deposits. The liquidity garnered through FCNR (B) will take care of just one quarter lending needs.”
freepressjournal.in
“The bank has a credit growth target of 15-17 per cent for the entire year, and we are going to stick with it.”
freepressjournal.in
Sources
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