HDFC Bank attracts almost $12 billion in overseas Indian deposits
Business
HDFC Bank has pulled in almost $12 billion by attracting deposits from overseas Indians, thanks to RBI's concessional swap window.
This move is part of RBI's push to bring more foreign money into the country, and the deposits came with a 6.25% interest rate, pretty solid for savers.
RBI concessional swap boosts foreign-currency liquidity
The RBI concessional swap window lets banks trade these foreign deposits with the central bank at a lower cost, helping keep India's foreign-currency liquidity strong and supporting the rupee amid external-sector pressures.
For HDFC Bank, this cash also helps balance its books after merging with HDFC Ltd.
Across all Indian banks, about $127 billion has been raised through this facility so far, showing just how important these inflows are.