Using Reserve Bank of India's window of attractive swap options, IndusInd Bank, reportedly may raise as much as $300 million from overseas investors. The easing of rates in the dollar market after the Federal Reserve abstained from tapering of bond purchases earlier this month, has made borrowings in overseas markets an attractive option for emerging market companies.
Borrowing overseas is more feasible since the yields in the local market have shot up after Rajan raised the repo rate, the rate at which RBI lends to banks, by 25 basis points on September 20.
Meanwhile, Reserve Bank of India on Wednesday reduced the minimum tenor of fund raising to one year since banks were reluctant to take funds for a longer tenor when the demand for funds remains uncertain.
