Axis Bank says FCNR flows present large opportunity, share in foreign deposit flows to be higher than its organic market

Published 18 July 2026 · local

Mumbai: Axis Bank expects its share in foreign currency flows through the Reserve Bank of India-backed scheme to be higher than its overall share of

Mumbai: Axis Bank expects its share in foreign currency flows through the Reserve Bank of India-backed scheme to be higher than its overall share of business. “As a franchise, we are comfortable stating that our market share will be higher than our organic market share,” chief financial officer Puneet Sharma said in the bank’s June quarter earnings call. As of 30 June, the bank's deposit market share was 5.1%, while its share of total sector advances was 5.7%, according to the investor presentation. Axis Bank managing director and CEO Amitabh Chaudhry said the FCNR-B deposit scheme is drawing strong interest from non-resident Indians (NRIs), and the bank sees a ‘meaningful opportunity’ to grow its deposit base through its NRI franchise and through tie-ups with overseas banks. Quick answers to key questions • 5 QUESTIONS 1 What is the FCNR-B deposit scheme and why is it significant for Axis Bank? ⌵ The FCNR-B deposit scheme allows non-resident Indians (NRIs) to deposit foreign currency in Indian banks. It is significant for Axis Bank as it presents a meaningful opportunity to grow its deposit base and improve its liquidity, given the strong interest from NRIs. 2 How does Axis Bank plan to enhance its market share in foreign currency deposits?

⌵ Axis Bank plans to enhance its market share in foreign currency deposits through strategic tie-ups with overseas banks and by leveraging its existing NRI franchise, expecting its share of FCNR deposits to exceed its organic market share. 3 Why are non-resident Indians showing strong interest in FCNR deposits currently? ⌵ Non-resident Indians are showing strong interest in FCNR deposits due to favorable terms and conditions offered under the Reserve Bank of India's backed scheme, which provides them with attractive opportunities for earning interest in foreign currency. 4 What impact do FCNR deposits have on Axis Bank's net interest margin? ⌵ FCNR deposits are expected to improve Axis Bank's net interest margin (NIM) by increasing the overall liquidity and allowing the bank to strategically deploy this additional liquidity towards growth initiatives. 5 Should NRIs consider depositing funds in Axis Bank under the FCNR scheme before the deadline? ⌵ Yes, NRIs should consider depositing funds in Axis Bank under the FCNR scheme before the deadline of September 30, as it offers a promising opportunity to earn favorable returns in a stable currency environment. However, the bank did not comment on the deposit flows garnered so far, saying that it expects to have a clearer picture by next quarter.