Lender taps overseas Indian deposits following Emirates NBD investment, with focus on trade finance and cross-border banking
RBL Bank has mobilised around $150 million through Foreign Currency Non-Resident (FCNR) deposits within a month, strengthening its foreign currency funding base as it seeks to expand its business with non-resident Indians (NRIs) and international clients. The fundraising follows the Reserve Bank of India’s temporary FCNR(B) deposit scheme, which remains open until 30 September.
The bank said it intends to continue raising FCNR deposits for the remainder of the scheme, although it has not set a formal target. Managing Director and Chief Executive Officer R. Subramaniakumar said the lender would mobilise as much funding as possible through both its own NRI customer network and banking partnerships.
The fundraising comes shortly after Dubai-based Emirates NBD completed its acquisition of a majority stake in RBL Bank through a capital infusion of about $2.75 billion, providing the Indian lender with access to a wider NRI customer base, particularly across West Asia. The partnership is expected to strengthen RBL Bank’s international banking capabilities and support growth in trade finance and cross-border financial services.
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FCNR deposits allow NRIs to maintain fixed deposits in foreign currencies while earning tax-free interest without exposure to fluctuations in the Indian rupee
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The RBI’s special window reduces hedging costs for banks on eligible deposits, making overseas fundraising more attractive.
Alongside the fundraising announcement, RBL Bank reported a 27 per cent year-on-year rise in net profit to ₹254 crore for the quarter ended June 2026. Asset quality improved during the period, although the lender continued to see pressure in its credit card portfolio due to what management described as a transitional restructuring phase. The bank expects this stress to ease over the coming quarters while margins gradually recover.
The latest FCNR mobilisation reflects growing competition among Indian banks to attract overseas Indian deposits as they diversify funding sources and support future lending growth.
