Chennai: Indian Overseas Bank (IOB) is targeting to raise $1 billion under Foreign Currency Non-Resident (Bank) (FCNR (B)) deposits and Overseas Foreign Currency Borrowings (OFCBs). Of this, $650 million would be sourced through FCNR (B) deposits by Sept 2026. The public sector lender is betting on its overseas branches and NRI customers base.IOB MD and CEO Ajay Kumar Srivastava told reporters here on Monday that the bank has already mobilised $300 million over the past one month since the RBI’s announcement. “Our aim is to mobilise approximately $1 billion. We are targeting around $600 million to $650 million by Sept end (2026), while the balance will come from OFCB route borrowing,” he said. The $300 million raise is over and above the legacy FCNR (B) deposits of $350 million with the bank. “If you compare with peer banks in the country, you will find that $300 million is much better than many of the bigger banks,” he added.The Chennai-headquartered has four overseas branches operating in Hong Kong, Singapore, and Thailand. Noting that the bank has 4.5 lakh NRI customers, he said, “We created a new product, and went aggressively into the market contacting our NRI customers.”FCNR(B) deposits are eligible under the swap initiatives till Sept 30, 2026, and ECBs and OFCBs are eligible till Dec 31, 2026.Meanwhile, IOB posted a 49% jump in net profit at Rs 1,659 crore during the quarter ended June 30, 2026, against Rs 1,111 crore in the corresponding quarter last year. The growth was on the back of a 34% increase in net interest income (NII) at Rs 3,688 crore in Q1 FY27 and 46% rise non-interest income.While savings bank deposits increased by 18% to Rs 1,27,262 crore, retail term deposits grew by 15.8% to Rs 1,86,882 crore during the first quarter of FY27. About 93% of the total deposit portfolio consists of CASA and retail term deposits. However, the CASA ratio fell by 273bps YoY (Q1 FY27 vs Q1 FY26) to 41.45% from 44.16%, respectively, though it remained flat QoQ. “We are one of the few banks whose CASA percentage is consistently over 40%,” Srivastava said.
