Forex schemes: BoB, BoI target over $6bn mop-up

Bank of Baroda (BoB) and Bank of India (BoI) aim to raise over $6 billion in foreign capital through schemes where RBI covers forex risk via dollar swaps.

Bank of Baroda targets $4 billion to $5 billion via FCNR(B) deposits, medium-term notes, and overseas foreign currency bonds; has already raised over $700 million.

Bank of India aims to mobilise $1.2 billion by end-September, raising $200 million so far, and will offer leverage up to nine times initial deposits.

RBI reports that banks have raised over $17 billion through FCNR(B) deposits as of this week.

Other PSU banks targeting FCNR(B) deposits include Punjab National Bank ($2.5B), Union Bank of India ($2.0B), and Central Bank of India ($400M).