UCO Bank to raise $500 million using RBI concessional swap window
Business
UCO Bank is gearing up to raise $500 million by accepting foreign currency deposits and borrowing funds from overseas.
It is taking advantage of a new Reserve Bank of India scheme that allows banks to swap overseas borrowings at concessional rates, which helps lower costs and gives a lift to India's foreign exchange reserves.
RBI swap window nets about $32B
This RBI window has already brought in around $32 billion in about 45 days, far more than the last big push back in 2013.
Big names like SBI, ICICI, and HDFC are also jumping on board.
A UCO Bank official put it simply: It is looking for "long-term and cost-effective funds" that fit both business needs and the rules.