Home / Business and Economy / SBI, HDFC Raise $1.7 Billion in Dollar Loans
SBI, HDFC Raise $1.7 Billion in Dollar Loans
29 Jul
Summary
- SBI and HDFC Bank are raising at least $1.7 billion combined.
- Banks aim to attract overseas client deposits via RBI facility.
- Foreign loans will be used to boost dollar reserves.
Two of India's largest financial institutions, State Bank of India (SBI) and HDFC Bank, are actively raising substantial dollar funds from foreign banks. SBI is reportedly securing a $1 billion five-year loan, with plans to syndicate it to other lenders. HDFC Bank is in the process of arranging a loan of at least $700 million.
These efforts are motivated by the Reserve Bank of India's (RBI) special facility, which allows banks to attract overseas client deposits without bearing currency hedging costs. The banks intend to leverage this initiative to enhance their dollar reserves and offer more attractive deposit options to international clients.
The combined fundraising is expected to exceed $1.7 billion, with potential increases for HDFC Bank's loan as more lenders join the deal. This strategic borrowing underscores the banks' proactive approach to managing their foreign currency resources and capitalizing on favorable RBI policies.
