Lenders may turn to OFCB route to raise more funds abroad

Lenders in India are considering a new route to raise more funds abroad, using the Overseas Foreign Currency Branch (OFCB) route. This shift in strategy comes as a result of the Reserve Bank of India moving up the deadline for deposit-linked fundraising, forcing lenders to revise their plans. The change allows lenders to borrow in overseas foreign currencies, which could provide them with more flexibility and options for meeting their fundraising requirements. This strategic pivot is significant for the Indian banking sector, as it could impact the country's foreign exchange markets and trade…

Why it matters

Indian banks are shifting focus towards borrowing in overseas foreign currencies to meet their fundraising requirements. This strategic pivot could help Indian banks raise more funds, but its impact on the market is uncertain.

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