RBL Bank Shares Rise 4% as FCNR Deposits Hit $3.4 Billion

RBL Bank Share Price: RBL Bank shares rose more than 4% on Thursday after the lender reported strong mobilisation of FCNR(B) deposits. The bank had garnered $3.4 billion of such deposits by August 31, the closing date of the RBI's concessional swap facility.

RBL Bank shares were trading 4.2% higher at ₹405.5 apiece at 10:45 am on September 3. The stock had closed 2.18% higher at ₹388.80 on Wednesday and has gained more than 29% so far in 2026. (year to date)

As of 3 Sep, 11.35 AM

Why is RBL Bank's FCNR Deposit Mobilisation Important?

FCNR(B) deposits are foreign currency fixed deposits where both the principal and interest are repaid in the same foreign currency.

RBL Bank mobilised $3.4 billion, or around ₹32,472 Cr, through the RBI's swap facility. Loans provided by the bank's international banking unit against these deposits stood at $1.08 billion.

Street estimates view the deposit mobilisation as significant for a mid-sized bank. The deposits are equivalent to:

• 26% of RBL Bank's total deposits

• 37% of its term deposits

• 2.7% of total FCNR(B) mobilisation

The strong mobilisation was supported by RBL Bank's promoter relationship with Emirates NBD and the UAE-India banking corridor.

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What Could Be the Impact on RBL Bank's Margins?

The large inflow of deposits is expected to provide support to the bank's earnings. However, the additional deposits could also put pressure on reported net interest margins (NIMs) in the near term.

FCNR(B) deposits have structurally lower incremental margins, while the additional deposits increase the size of the bank's balance sheet.

Street estimates see NIM pressure of around 40-45 basis points over the next two quarters, with a partial impact expected in the second quarter and the full impact in the third quarter.

The pressure could be partly offset by NIM accretion from the ₹26,000 Cr equity infusion. The eventual NIM trajectory will depend on how quickly RBL Bank deploys and utilises the additional deposits.

RBI's FCNR(B) Facility Sees Strong Mobilisation

The RBI's special USD-INR forex swap facility for FCNR(B) deposits, overseas foreign currency borrowings and external commercial borrowings was launched on June 8 to attract foreign capital.

FCNR(B) mobilisation under the facility reached $127.23 billion by August 31. Nearly $62 billion was added in the last 10 days, marking the strongest phase of inflows.

Bank-wise data is yet to be fully disclosed. ICICI Bank has reported $17.9 billion of FCNR(B) mobilisation.

Conclusion: What Does This Mean for Investors?

RBL Bank's $3.4 billion FCNR(B) mobilisation has significantly increased its deposit base, while the bank's international banking unit has provided $1.08 billion in loans against these deposits. The key factor for investors will be how effectively the lender deploys the additional funds while managing the near-term pressure on NIMs.