Reserve Bank of India building and surrounding street on an overcast day
State Bank of India (SBI), Axis Bank, and Bank of Baroda, alongside Power Finance Corporation, are poised to raise more than $2 billion from international markets next week. This significant fundraising effort is being driven by an attractive incentive offered by the Reserve Bank of India (RBI).
The RBI has introduced a 1.5% fixed-rate swap incentive for external commercial borrowings (ECBs), a measure designed to attract foreign currency and strengthen the Indian rupee. The success of HDFC Bank’s recent dollar bond issuance has reportedly spurred this wave of fundraising among other major financial institutions.
By capitalizing on the RBI’s swap facility, these banks aim to secure cheaper funding from overseas while simultaneously contributing to the stability of the domestic currency. The move signals a strategic approach by Indian financial entities to tap global liquidity under favorable terms, further supported by central bank policy.
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