HDFC Bank Raises $12 Billion Through FCNR-B Deposits

HDFC Bank has raised $12 billion through FCNR-B deposits, offering an interest rate of 6.25% to attract foreign-currency deposits. Key Highlights • Funds raised: $12 billion through FCNR-B deposits. • Interest rate offered: 6.25%. • FCNR-B stands for Foreign Currency Non-Resident (Bank) deposits, which allow NRIs to maintain fixed deposits in designated foreign currencies with Indian banks. Why It Matters The $12 billion mobilisation provides HDFC Bank with a sizeable pool of foreign-currency funding through deposits rather than conventional overseas borrowings. For the bank, FCNR-B deposits can help diversify its funding sources and provide access to foreign-currency funds. The 6.25% interest rate offered is the cost paid to depositors for attracting these funds. Unlike regular rupee deposits, FCNR-B deposits are maintained in foreign currency, meaning depositors are protected from INR exchange-rate movements on their principal and interest when measured in the deposit currency. The scale of the $12 billion raise makes this a notable funding development for HDFC Bank and highlights the role of NRI deposits in its funding mix.