HDFC Bank collects $300 million via NRE Deposits

8 Aug 2022 , 09:29 AM

Reportedly, HDFC Bank raised up to $300 million in NRE deposits, offering up to 50 basis points higher than the current rates. These deposits were amassed over the course of two days last week.

The Middle East drove the list of new NRI depositors, with the rest of Asia and Europe not far behind.

The recent success of this round of deposit collection may compel HDFC Bank to open additional such dedicated windows for foreign buyers until November.

The window remained open as an experiment, and it was in line with the US Federal Reserve policy announcement.

The Reserve Bank of India (RBI) has allowed banks to accept FCNR (B) and NRE deposits from the Indian diaspora without any interest rate caps.

Further, the central bank also eased restrictions on external commercial borrowings in an effort to stem the outflow of funds and relieve pressure on the rupee.

The response to NRE deposits from non-resident Indians could be even better if banks are given additional regulatory support, as they were in 2013.

HDFC Bank was trading at Rs1,434.60 per piece, up by 0.56% from its previous closing of Rs1,426.55 on the BSE. The scrip opened at Rs1,428.45 and has touched intraday high and low of Rs1,435.55 and Rs1,427.15 respectively.