Indian banks raise $12 billion abroad using RBI 1-time swap
Indian banks have already raised $12 billion abroad this year, taking advantage of the central bank's one-time swap facility.
Of the $12 billion raised by banks, $10 billion was garnered after the RBI announced on June 5 the special dispensation for drawing deposits and other forex-inflow programs.
Big names like HDFC Bank, ICICI Bank, Kotak Mahindra Bank, IDFC First Bank, and Bank of Baroda raised $4.4 billion this week alone, with the bulk of the proceeds may be used to help fund the leverage for foreign currency non-resident (bank) [FCNR (B)] deposits.
HDFC Bank $1.75B record, deals oversubscribed
HDFC Bank set a record with a single $1.75 billion debt issue on Thursday (plus another $750 million in June earlier).
IDFC First Bank and Bank of Baroda also increased their stakes.
Despite all this borrowing, investor confidence is solid: bond spreads barely moved and deals were oversubscribed on an average 2.89 times.