State Bank of India raises $1.5 billion in forex deposits as rates hit 7.5%

The lender's surge in foreign-currency inflows highlights a broader rush by overseas investors into Indian banking assets, driven by attractive yields and central bank support.

By Handelsavisen Newsroom · Automated 2026-07-09 06:37 UTC · 1 min read

State Bank of India has attracted more than $1.5 billion in foreign-currency deposits under a special facility launched last month for overseas citizens, according to people familiar with the matter.

The rapid uptake underscores the strong demand for high-yielding Indian banking instruments among non-resident investors.

34 billion Indian rupees into banking stocks over a single fortnight, marking the largest two-week inflow into the sector in 14 months.

Lenders are offering depositors interest rates of approximately 7.5%, a level made possible by subsidies from the Reserve Bank of India.

The central bank’s backing allows banks to pass on competitive returns to foreign depositors, effectively lowering the cost of capital for the lenders while providing a safe haven for overseas savings.

This influx aligns with a broader trend of renewed foreign appetite for Indian financial assets.

Foreign portfolio investors recently poured 146.34 billion Indian rupees into banking stocks over a single fortnight, marking the largest two-week inflow into the sector in 14 months.