Indian banks are rapidly raising funds from international markets through US dollar-denominated bonds, with over $10 billion expected to be raised so far—a record high. Along with major lenders, first-time issuers such as Kotak Mahindra Bank and IDFC First Bank have also entered the overseas bond market to benefit from the RBI’s concessional swap facility, which reduces hedging costs by 1.5%. While the RBI’s special window for FCNR(B) deposits will close at the end of August, the concessional swap facility for Overseas Foreign Currency Bonds (OFCBs) and External Commercial Borrowings (ECBs) will remain available until December 31, encouraging more banks to raise funds from global investors in the coming months.
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