SBI expects $10 billion FCNR(B) deposits to support lending, lower funding costs
Mumbai, Aug. 7 -- State Bank of India (SBI) has mobilized about $6 billion in deposits under the Reserve Bank of India's special foreign currency non-resident (FCNR-B) deposit window and expects to raise about $10 billion (close to Rs.1 trillion), chairman C.S. Setty said on Friday.
Speaking after the bank announced its first-quarter results, Setty said SBI did not have a specific mobilization target, but the additional funds would help finance loan growth while reducing reliance on expensive bulk deposits.
Calling the liquidity from FCNR(B) deposits a "good, positive development", Setty pointed out that large banks stand to benefit more from these flows.
"Everyone will try to see that the bulk deposits are priced reasonably, if not co...
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