A limited international presence constrained the bank’s ability to mobilise foreign currency non-resident-bank — or FCNR(B) — deposits under the Reserve Bank of India’s (RBI’s) concessional swap facility, as noted by outgoing MD & CEO Sashidhar Jagdishan during an earnings call over the weekend. “We have just about two effective branches operating outside of
the country — one was Bahrain, the other one was Singapore,” he said.
Other banks had a larger network of overseas branches that they could deploy to mobilise deposits, giving them an advantage, he said.
HDFC Bank mobilised $11.5 billion in FCNR(B) deposits under the concessional swap window, compared with $17.88 billion raised by ICICI Bank, the country’s second-largest private sector lender. HSBC was another major mobiliser, raising $14.5 billion, while Axis Bank garnered $10.62 billion. State Bank of India (SBI), the country’s largest lender, has reportedly mobilised nearly $11 billion through the FCNR(B) deposits facility, which closed on August 31.
“I think we probably did whatever we could with the kind of resources that we had. Yes, as we move forward, I am sure it’s one strategy that the bank will have in terms of expanding its footprint in the overseas jurisdictions at some point in time,” Jagdishan added.
Jagdishan will step down on October 26, with Bagchi taking over as MD & CEO on October 27. In his first public remarks since being named to the post, Bagchi said he would engage with regulators, customers and other stakeholders to gather insights that would inform his approach to leading the bank. “At this point, I am just understanding the mechanics of the balance sheet and P&L (profit and loss), which from outside you can only understand that much,” Bagchi said.
Bagchi also sought to reassure investors about the strength of HDFC Bank’s management team and institutional processes, stressing that the lender’s operations did not depend on a handful of individuals. “It is a very process-driven institution and not dependent on just one or two or three individuals,” he said.
According to HDFC Bank’s FY26 annual report, its international operations comprise branches in Hong Kong, Bahrain and Singapore, as well as at the Dubai International Financial Centre (DIFC). The bank also operates an International Financial Services Centre (IFSC) banking unit in Gujarat International Finance Tec-City (GIFT City). Its representative offices are located in Nairobi, Kenya; Abu Dhabi and Dubai in the UAE; and London.
Overseas branches can undertake permitted banking activities, including deposit-taking and lending, subject to local regulatory requirements. Representative offices, by contrast, are generally restricted to liaison, information-gathering and relationship-building activities and cannot independently conduct banking business.
In September 2025, HDFC Bank was barred by the local regulator from onboarding new customers at its DIFC branch.
According to disclosures, the bank mobilised $11.5 billion in foreign currency deposits under the RBI’s concessional swap window. Its overseas branches extended loan facilities aggregating $5.7 billion against these deposits, while standby letters of credit issued to other banks in respect of loans backed by the deposits amounted to $3.1 billion. Separately, HDFC Bank raised $2.5 billion through US dollar-denominated bonds between June and August.
ICICI Bank has business centres in six overseas locations and representative offices in 12 locations outside India. Its international network spans Hong Kong, Singapore, the US, the UK, Canada, China, the DIFC and Bahrain.
SBI, meanwhile, has 245 overseas points of presence across 29 countries. Its overseas branches operate on both the assets and liabilities sides of the balance sheet, with specialised branches catering to retail banking, corporate banking, trade finance and investments.
Major lenders’ overseas footprint
SBI: 245 overseas points across 29 countries
ICICI Bank: Business centres in six locations and representative offices in 12
HDFC Bank: Branches in Hong Kong, Bahrain, Singapore and DIFC; IFSC unit in GIFT City; representative offices in Nairobi, the UAE and London
Axis Bank: Branches in Singapore and DIFC; IFSC unit in GIFT City; representative offices in the UAE and Bangladesh
