Canara Bank is targeting $2.3 billion to $2.5 billion in foreign currency fundraising through FCNR(B) deposits and overseas borrowings.
The bank has targeted to raise $1.3-$1.5 billion through FCNR(B) deposits by September 2026, and the rest will come through ECBs and OFCBs. The bank has already raised about $775 million via the FCNR(B) window and mobilized nearly Rs. 7,300 crore through the scheme in July.
The fundraising drive comes after the Reserve Bank of India (RBI) lifted the interest rate cap on fresh FCNR(B) deposits with a tenure of three to five years. The special deposit window is open until September 30, 2026, and banks can increase overseas borrowings as per RBI's guidelines till 31st December 2026.
Canara Bank has posted healthy growth in the business during the quarter ended June, as its total advances grew 18% YoY to Rs. 12.93 lakh crore, while total deposits rose 12% YoY to Rs. 16.11 lakh crore. The value of global business grew by 14% to Rs. 29.05 lakh crore.
The bank also earned net interest income (NII) of Rs. 10,215 crore. Commenting on the performance, Managing Director Brajesh Kumar Singh says that the bank's "net interest income has crossed Rs. 10,000 crore this quarter, which shows 13% growth.
Canara Bank's asset quality continued to improve further in the quarter. Gross NPA (GNPA) fell to 1.57% from 2.69%, and net NPA to 0.36% from 0.63% a year ago. The Provision Coverage Ratio (PCR) also increased to 94.76%.
The bank said the credit quality has seen an improvement even with the growth in loans, as the slippage ratio came down to 0.60% in the quarter with the recoveries of Rs. 2,500 crore. The combination of stronger profitability, healthier asset quality and additional foreign currency funding is expected to support the bank's lending and liquidity position in the coming quarters.