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FCNR(B) mobilisation gains momentum; liquidity outlook strengthens

ICICIdirect Research 31 Jul 2026 DISCLAIMER

FCNR(B) mobilisation has gathered significant momentum, with inflows rising from around US$17.4 billion in the first month of the RBI’s concessional swap window to nearly US$32–34 billion within the next 10–15 days, reflecting a sharp acceleration in NRI deposit mobilisation. The pace of inflows has already surpassed the mobilisation seen under the 2013 FCNR(B) scheme.
Industry estimates points towards accretion of US$65–70 billion of FCNR(B) deposits by the close of the window (September 2026) which is seen to provide the much-needed liquidity to the banking industry and thus aid margin trajectory.
HDFC Bank closes internal review of MSRDC matter
HDFC Bank had earlier come under scrutiny after allegations that it routed ~₹45 crore through marketing and sponsorship expenses to effectively enhance returns on bulk deposits mobilised from MSRDC, potentially diverging from RBI’s deposit pricing guidelines.
In its latest exchange filing, the Board in its internal review concluded that the conduct of employees involved constituted “business overreach” rather than mala fide intent, personal enrichment, or improper motive. However, citing a potential divergence from RBI directions, the bank issued warning letters and a ₹1 lakh monetary penalty each to the MD & CEO, CFO and Group Head–Retail Assets, while directing that the findings be communicated to the RBI.


We believe that the Board’s findings largely remove a key governance overhang and could pave the way for MD & CEO’s reappointment, although the RBI’s final regulatory stance remains an important monitorable. With HDFC Bank already trading at relatively inexpensive valuations versus its historical averages, clarity on appointment of MD & CEO could support an improvement in investor sentiment and valuation multiples. We have a buy rating on the stock with Rs 1000 target price.

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