Banking & NBFCs · Daily brief
The public-sector bank has raised nearly half its offshore deposit goal organically, without leverage-linked schemes, as part of a $1 billion overseas fundraising plan.
Indian Overseas Bank (IOB) has set a target to raise $650 million in FCNR(B) deposits by September 30. The bank has already secured $300 million, close to 50% of the target, well ahead of the deadline.
Unlike some peers, IOB has raised this amount organically, without offering complex 9x leverage schemes to depositors.
Combined with foreign currency borrowings, this FCNR(B) push takes IOB's total offshore fundraising plan to $1 billion.
The fundraising comes against the backdrop of a strong Q1 for the bank: net profit rose 49.3% to ₹1,659 crore.
IOB was previously constrained by legacy NPAs and prompt corrective action (PCA) restrictions. It is now drawing on its NRI relationships across South-East Asia and the Middle East to build this dollar deposit book.
Sources
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