State Bank of India has mobilised almost $6 billion through FCNR(B) deposits and expects to raise around $10 billion under the scheme, the lender's chairman CS Setty said at an SBI press briefing.
The strong traction in foreign currency non-resident deposits comes as SBI looks to strengthen its deposit base while maintaining its growth momentum in loans. The chairman said the bank expects to see an uptick in deposits in the second quarter, partly driven by FCNR(B) deposits.
"We have mobilised almost $6 billion under FCNR(B) deposits," the chairman said, adding that the traction indicates SBI should be mobilising around $10 billion under the scheme.
ALSO READ: SBI Share Price Gains Over 2% After Q1 Results. Here's All You Need To Know
SBI has also raised $1 billion through the overseas foreign currency borrowing (OFCB) route, according to the chairman.
On the domestic deposit front, mobilisation remained healthy, growing 10% year-on-year. Retail term deposits and savings deposits continued to see good traction, while corporate, retail and RAM (retail, agriculture and MSME) loans also recorded healthy growth.
The chairman said operating efficiency improved during the quarter, while overseas operations delivered healthy growth in advances.
For FY27, SBI is targeting deposit growth of 10-11% year-on-year, while its credit growth guidance has been raised to 14-15% from the earlier 13-15% range. The chairman said the credit growth outlook is aligned with nominal GDP growth.
"We will continue targeting 3% NIM for FY27," the chairman said, reiterating the bank's net interest margin guidance.
ALSO READ: SBI Q1 Results: Net Profit, NII Top Estimates; Asset Quality Improves
SBI is also targeting a return on assets (RoA) of 1% in FY27, with return on equity (RoE) expected to remain above 15%.
The chairman said the bank's growth strategy would be supported by healthy deposit mobilisation, stronger advances and continued improvement in operating efficiency. The lender's overseas operations are also expected to contribute to overall advances growth.
With FCNR(B) deposits seeing strong traction, SBI expects the scheme to become an important source of foreign currency funding as it works towards its broader FY27 growth and profitability targets.
Essential Business Intelligence, Sharp Market Insights, Practical Personal Finance Advice, Daily Fuel, Gold and Silver Prices and Latest Stories — On NDTV Profit.