AU Small Fin Bank ups 3-4 year FCNR(B) deposit peak rate by 30 bps to 7.40%
This story was originally published at 17:25 IST on 27 July 2026
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MUMBAI – AU Small Finance Bank has increased the peak interest rate on its Foreign Currency Non-Resident (Bank) deposits for three to four years by 30 basis points to 7.40% from 7.10%, effective Monday, the bank said in a press release. In June, the bank had revised the rates following the Reserve Bank of India's announcement of a swap facility for banks to mobilise fresh FCNR(B) deposits.
The revision comes despite AU Small Finance Bank's management saying during its post-earnings conference call that the bank is unlikely to gain directly from the FCNR(B) deposits.
FCNR(B) deposits are an important channel for attracting overseas Indian savings into the country while protecting depositors from exchange-rate fluctuations. Available in US dollars, these deposits offer non-resident Indians a fully repatriable investment avenue, with both principal and interest exempt from income tax in India.
The bank has also increased the Non-Resident External fixed deposit rate to 7.60% from 7.00% earlier for tenures of 36 months and 1 day to 45 months.
Monday, AU Small Finance Bank's shares ended at INR 1,052.20 on the National Stock Exchange, up 4.8% from the previous close. For the June quarter, the bank reported a net profit of INR 7.96 billion and total income of INR 59.92 billion. End
Reported by Diksha Tripathy
Edited by Saji George Titus
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