Country's largest lender State Bank of India (SBI) has raised over $6 billion under the Reserve Bank of India's swap facility for foreign currency non-resident deposits (FCNR-B), overseas foreign currency borrowings (OFCBs) and external commercial borrowings (ECBs), sources say. The lender is expecting cumulative inflows to the tune of $10-15 billion under the RBI facility, they say.
The bank is understood to have raised over $5 billion through the FCNR-B route, garnering over $1 billion just last week. SBI is offering up to 9X leverage to its clients under the scheme. Further, the lender has raised $1 billion through OFCB facility, at the borrowing cost of 0.65% over the SOFR rate. The bank has raised $500 million through the ECB facility and has a strong pipeline ahead, sources say.
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SBI did not respond to queries sent by NDTV Profit. On Sunday, RBI Governor Sanjay Malhotra said banks have raised over $32 billion under its June policy measure. Economists expect cumulative inflows of $60-70 billion under the RBI's scheme.
In June, the RBI said it will fully subsidise FX hedging costs for banks raising fresh 3–5-year FCNR-B deposits. It offered concessional FX swap facility to incentivise ECB by state-owned enterprises (PSUs). These measures are intended towards garnering US dollars and helping India's balance of position.
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