HSBC Holdings Plc has purchased at least $3 billion of Indian government bonds since July, deploying funds gathered under a special diaspora dollar deposit program, according to people familiar with the matter.

The lender focused on bonds in the 5-year maturity bracket over the past couple of months, seeking avenues to park funds attracted under the Reserve Bank of India's foreign currency non-resident, or FCNR(B) program, the sources said, requesting anonymity when discussing private matters.

The bond purchases followed a deposit boost, enabling HSBC to allocate a large pool of funds into Indian sovereign debt. The transactions highlight growing international investor interest in Indian fixed-income markets amid supportive regulatory frameworks.

Bloomberg Markets reported the development, noting that HSBC's strategy aligns with broader trends of global banks leveraging deposit programs to invest in emerging market government securities.