SBI mobilizes $127 billion in FCNR deposits amid RBI liquidity surge

State Bank of India Chairman CS Setty addressed concerns regarding the impact of Foreign Currency Non-Resident deposits on the banking system during Global Fintech Fest 2026 in Mumbai. The central bank's concessional swap window, launched on June 8, concluded prematurely on August 31 due to overwhelming demand. Commercial banks successfully mobilized $127.2 billion in FCNR(B) deposits, significantly exceeding initial market expectations of $90-100 billion and the SBI target of nearly $10 billion. Total external inflows reached $136.4 billion by August 31. Setty stated these funds will be deployed gradually over the next three to four months to prevent reckless lending expansion. He declined to disclose the specific amount raised by the country's largest lender. Meanwhile, India's IPO fundraising remains on track to breach the ₹1 lakh crore milestone in 2026, potentially reaching $144 billion if recent listings succeed.