Bank of Baroda’s Managing Director Debadatta Chand announced plans to raise $4‑5 billion via FCNR(B), MTNs and OFCBs, aiming to offset ₹17‑18 crore of bulk deposits. The bank also eyes a strategic overseas expansion to lift its foreign book to 20% of global business.

Key Takeaways

  • FCNR(B) inflows expected to replace ₹17‑18 crore of bulk deposits
  • Target $4‑5 billion overseas fundraising across FCNR, MTN, and OFCB
  • Plan to raise overseas book share to 19‑20% of global business in coming years

Baroda’s Aggressive Overseas Fundraising Goal

Managing Director & CEO Debadatta Chand told ETBFSI that the bank aims to mobilise $4‑5 billion through FCNR(B) deposits, medium‑term notes (MTNs) and overseas foreign currency borrowings (OFCBs), directly substituting roughly ₹17‑18 crore of bulk deposits.

Current FCNR(B) Mobilisation

To date, Baroda has mobilised close to $700 million via FCNR(B) and expects to cross the $1 billion mark by month‑end. Chand expects at least $2 billion of the overall target to come solely from FCNR(B) deposits.

RBI Swap Window and Funding Diversification

The Reserve Bank of India’s temporary swap facility encourages banks to attract foreign‑currency deposits, allowing them to diversify funding sources and reduce reliance on wholesale deposits.

Bulk and Domestic Deposit Landscape

As of June 30 2026, bulk deposits (including certificates of deposit) stood at ₹3.18 lakh crore, marginally down from ₹3.19 lakh crore in March, despite a 37% YoY rise. Domestic deposits grew 14.7% YoY to ₹13.82 lakh crore, while global deposits rose 13.8% to ₹16.34 lakh crore.

Overseas Expansion and ECB Under‑Writing

Baroda is underwriting approximately $1.5 billion of external commercial borrowings (ECBs) that will flow into India under the RBI swap framework. Chand projects the overseas book, currently 16‑17% of the global portfolio, to reach 19‑20% within a couple of years.

Why This Matters

BozokMedia analysis shows that the aggressive overseas fundraising and the push to replace bulk deposits signal a strategic shift for public sector banks toward more stable, foreign‑currency liabilities, enhancing resilience against domestic liquidity shocks.

This move positions Indian public banks as competitive players in the global funding arena, delivering long‑term stability.
Did You Know?: The FCNR(B) scheme was introduced by the RBI in 2001, allowing NRIs to hold foreign‑currency deposits in Indian banks.

Frequently Asked Questions

  • Q: Who can invest in FCNR(B) deposits?
    A: Primarily Non‑Resident Indians (NRIs) and Persons of Indian Origin (PIO) seeking foreign‑currency exposure.
  • Q: How will Baroda’s overseas expansion benefit Indian corporates?
    A: It will provide easier access to foreign funding and smoother cross‑border trade and capital flows.