Chennai-Based Indian Overseas Bank Targets 1 Billion Dollars in Foreign Funds

The Chennai-headquartered Indian Overseas Bank (IOB) announced on Monday that it is targeting to raise $1 billion through Foreign Currency Non-Resident (Bank) deposits and Overseas Foreign Currency Borrowings. The public sector lender has already mobilized $300 million over the past month, leveraging its global network and non-resident Indian customer base.

Speaking to reporters in Chennai, IOB Managing Director and Chief Executive Officer Ajay Kumar Srivastava outlined the bank's strategy to secure the foreign funds. The bank aims to source between $600 million and $650 million through FCNR (B) deposits by September 2026, while the remaining balance will be raised through the Overseas Foreign Currency Borrowings (OFCB) route.

The initial $300 million was mobilized in the single month following an announcement by the Reserve Bank of India (RBI). According to Srivastava, this initial sum is over and above the bank's legacy FCNR (B) deposits, which currently stand at $350 million.

Srivastava highlighted the bank's strong performance compared to other financial institutions in the country. He noted that the $300 million raised so far outperforms the mobilization efforts of many larger peer banks.

To reach its $1 billion target, the Chennai-based lender is utilizing its international footprint, which includes four overseas branches operating in Hong Kong, Singapore, and Thailand.

The bank is also focusing on its substantial non-resident Indian (NRI) customer base. IOB currently has approximately 4.5 lakh NRI customers worldwide. To engage this group, the bank developed a specialized financial product and launched an active marketing campaign.

"We created a new product, and went aggressively into the market contacting our NRI customers," Srivastava said. The bank plans to continue this outreach to secure the remainder of the targeted funds by the September 2026 deadline.