HSBC pulls in $5.5bn NRI deposits under RBI concessional window
HSBC just pulled in about $5.5 billion from nonresident Indian (NRI) deposits, thanks to a high-leverage foreign currency scheme under the Reserve Bank of India's concessional window.
Over $3.5 billion has already been lent out, all part of a push to bring more diaspora money into India and strengthen the country's external reserves.
HSBC 19x leverage, Standard Chartered 9x
HSBC used leverage up to 19 times the deposit amount, way above Standard Chartered's about nine times approach that raised about $1 billion.
Their strong presence in GIFT City, Singapore, and Dubai made it easier to attract NRI funds.
With banks raising about $32 billion through these programs so far, this is helping boost India's reserves.
Plus, thanks to RBI's updated rules, Soumya Kanti Ghosh, group chief economic adviser at State Bank of India, said in a note Monday that many maturing deposits are expected to be renewed.