The assets of only Russian Indian-owned bank Commercial Indo Bank jumped eight-fold in 2022 to RUB43.5bn and by another 39% in 1H23 to RUB60.3bn ($0.6bn), according to Kommersant daily. In a year and a half period, the assets have thus jumped over 11-fold, and attracted funds by over 18-fold.

Previously the rating agency ACRA also noted Indo Bank's business expansion and diversification of its revenues "against the backdrop of increasing trade turnover between Russia and India" in March. 

According to ACRA analysts, Indo Bank focuses on cash and settlement services and deposit operations of companies related to export-import operations between the two countries. The bank's website lists currency exchange and money transfers, including in rupees to India, among its services. 

As followed by bne IntelliNews, the FX markets of Chinese yuan, Indian rupee and the UAE dirham are in focus in Russia since the US dollar and euro have become “toxic” currencies after the fallout from Russia's full-scale military invasion of Ukraine.

In particular, Russia is estimated to have accumulated up to $1bn per month in rupee assets stranded outside the country due to unresolved issues in the trade relationship with India. Howerve, top Russian bankers recently argued that rupee surplus will dissolve in the short term.

The analysts surveyed by Kommersant believe that Indo Bank could also have seen an influx of funds from non-residents, who redirected them from other sanctioned Russian banks. Notably, the Commercial Indo Bank prefers not to expand lending, but to keep funds on deposit with the Central Bank of Russia (CBR). Commercial Indo Bank is 100% owned by the State Bank of India.