Mumbai, Sept. 9 -- India's record inflow of foreign-currency deposits has left banks with a wall of liquidity to deploy, raising the risk of "abnormal lending," Axis Bank managing director Amitabh Chaudhry warned.

"FCNR deposits (foreign currency non-resident) could lead to some abnormal lending, because we'll have to deploy this. I hope they don't do that," Chaudhry said at a fireside chat at the Global Fintech Fest 2026 on Wednesday here.

Banks raised a record $127.22 billion through FCNR(B) deposits under the Reserve Bank of India's foreign-exchange swap facility before the window closed on 31 August, a month ahead of schedule. That compares with $26 billion raised through a similar scheme in 2013.

Including $5.26 billion through of...