ICICI Bank mobilises $17.88 billion via RBI's forex swap facility

ICICI Bank has mobilised $17.88 billion through Foreign Currency Non-Resident (B) deposits under the RBI's swap facility, leveraging the central bank's liquidity support measures to strengthen its foreign currency operations.

The bank deployed approximately $9 billion of the mobilised funds as loans to various borrowers, while simultaneously issuing standby letters of credit valued at $3.63 billion against the deposits secured through the facility. The move reflects the bank's strategy to manage its foreign currency liabilities and support credit growth.

The RBI's FCNR (B) swap facility has emerged as a key tool for banks to manage their forex positioning and liquidity requirements. Under the mechanism, banks can borrow foreign currency from the RBI and simultaneously lend rupees in the domestic market, enabling them to meet overseas funding needs while supporting domestic credit expansion.

ICICI Bank's utilisation of the facility demonstrates confidence among private sector lenders in accessing central bank liquidity support amid evolving global financial conditions. The bank's deployment of these funds across loans and credit facilities underscores continued credit growth momentum in the Indian banking sector.