SBI, Axis Bank among lenders set for $2 billion ECB fundraising via RBI swap

Major Indian banks, including State Bank of India (SBI), Axis Bank, and Bank of Baroda, alongside Power Finance Corporation, are set to raise funds from overseas markets. The fundraising effort, which is expected to be over $2 billion, is likely to happen as early as next week. The banks are taking advantage of the Reserve Bank of India's 1.5% fixed-rate swap incentive for external commercial borrowing (ECB). This incentive is expected to facilitate the fundraising process for the banks. The Reserve Bank of India's swap incentive is a key factor in the banks' decision to tap the overseas bond markets. The banks' decision to raise funds from overseas markets is a significant development in the Indian banking sector. The fundraising effort is expected to provide a boost to the banks' liquidity and support their lending activities. The move is also seen as a positive step for the Indian economy, as it will help to increase the flow of foreign funds into the country. The banks' ability to raise funds from overseas markets is a testament to their strong credit profile and their ability to attract international investors. The fundraising effort is expected to be completed soon, with the banks expected to use the funds raised to support their business growth and expansion plans.