Canara Bank targets up to $2.5 billion via FCNR-B, overseas borrowings

Synopsis

Canara Bank plans to raise up to $2.5 billion through FCNR-B deposits and overseas borrowings to boost dollar inflows. The lender reported a 2.2% rise in first-quarter profit, improved asset quality, steady margins and double-digit growth in advances and deposits.

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Canara Bank aims to raise $2.3-2.5 billion through the special foreign currency non resident bank deposits (FCNR-B) and overseas borrowing windows, which are being used to boost dollar-inflows into the country.

The state-owned lender targets to raise $1.5 billion from FCNR-B alone by September, managing director Brajesh Kumar Singh said.

"We have already raised $750 million in FCNR-B deposits and expect the count to cross $1 billion this month," Singh said after announcing a slim 2.2% year-on-year rise in first quarter net profit at Rs 4856 crore against Rs 4752 crore in the year-ago period.

He said that the bank would target to raise around $1 billion in the third quarter through a combination of external commercial borrowing and overseas foreign currency borrowing.

He also said that the mobilisation of FCNR-B deposits would help the bank shed about Rs 10000 crore of bulk deposits, which constitutes over a fifth of the bank's total deposit base, keeping cost of deposits near 5.3% even after a 40 basis point moderation year-on-year.

The bank's operating profit rose 0.96% year-on-year at Rs 8636 crore while total income was lower at Rs 39696 crore for the quarter against Rs 41442 crore in the year ago period.

Mobilisation to help shed ₹10K-cr of bulk deposits, bank says after posting slim growth in Q1 net

A 13.4% year-on-year rise in net interest income at Rs 10215 crore was offset by a 60% drop in earnings from sale of investment at Rs 654 crore against Rs 1617 crore earlier.

It maintained net interest margin for the quarter at 2.52% against 2.55% a year prior. Gross non-performing assets ratio improved to 1.57% as at June 2026 reduced from 1.84% as at March 2026 and 2.69% as at June 2025. Net NPA ratio improved to 0.36% from 0.43% and 0.63% over the same period.

The bank's gross advances expanded by 18% year-on-year to Rs 12.93 lakh crore while deposits increased by 11.6% to Rs 16.12 lakh crore at the end of June.

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