ICICI Bank Raises $17.88 Billion Through RBI Swap Facility

ICICI Bank has raised around $17.88 billion through the Reserve Bank of India's Foreign Currency Non-Resident Bank (FCNR(B)) deposits under the special dollar-rupee swap facility. The private sector lender disclosed this information in an exchange filing, stating that of the total amount raised, around $9 billion was provided as loans by the bank's international branches and subsidiaries against these deposits.

The bank also issued standby letters of credit worth approximately $3.63 billion to other lenders against loans backed by such deposits. Additionally, ICICI Bank raised an aggregate $3.55 billion through US dollar-denominated bonds during July and August 2026.

The Reserve Bank of India introduced the FCNR(B) swap facility on June 8 to attract foreign exchange inflows amid pressure on the Indian rupee. The central bank closed the special USD-INR swap window for FCNR(B) deposits on August 31, after strong inflows and sufficient foreign exchange mobilisation.

According to RBI data, authorised dealer banks had mobilised $72.848 billion in foreign currency inflows under the facility as of August 21. FCNR(B) deposits accounted for the bulk of the mobilisation at $65.397 billion, while external commercial borrowings (ECBs) and overseas foreign currency borrowings (OFCBs) contributed another $7.451 billion.

The government has described the initiative as India's largest and fastest foreign-currency mobilisation exercise, surpassing the 2013 FCNR(B) swap scheme. The RBI had initially planned to keep the FCNR(B) window open until September 30 but advanced the closure to August 31 following strong inflows.

The swap facility for ECBs and OFCBs will remain available until December 31, 2026. ICICI Bank's fundraising efforts through the FCNR(B) swap facility and bond issuance demonstrate the bank's ability to tap into international markets and raise capital to support its growth plans.

The success of the FCNR(B) swap facility is a positive development for the Indian economy, as it helps to boost foreign exchange reserves and reduce pressure on the rupee. The facility has attracted strong inflows, with ICICI Bank being one of the major beneficiaries.

In conclusion, ICICI Bank's fundraising efforts through the FCNR(B) swap facility and bond issuance are a significant development for the bank and the Indian economy. The success of the facility demonstrates the ability of Indian banks to tap into international markets and raise capital to support their growth plans.

The impact of this development on the Indian economy is expected to be positive, as it helps to boost foreign exchange reserves and reduce pressure on the rupee. The government's initiative to attract foreign exchange inflows has been successful, and the closure of the FCNR(B) window is a testament to the strong inflows and sufficient foreign exchange mobilisation.

Overall, ICICI Bank's fundraising efforts through the FCNR(B) swap facility and bond issuance are a significant achievement, and the success of the facility is a positive development for the Indian economy.