The deposit mobilisation gives Bank of India funding equivalent to around three months of its lending requirements, according to its CEO. The figure describes how much lending the money could support; it is not a statement that the bank has already disbursed that amount in loans.

The bank has used these deposits to substitute for bulk funding sources. This makes the development a change in its funding mix, rather than simply a headline about money raised. The report does not specify which bulk sources are being replaced or provide a comparison of their costs with the new deposits.

The mobilisation comes against the backdrop of a special deposit scheme announced by the Reserve Bank of India to help strengthen liquidity. The supplied report gives no details on the scheme’s rates, deposit tenures or eligibility conditions. It also does not state whether Bank of India plans further mobilisation through this route.