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SBI, Axis Bank among lenders set to raise $2B overseas
20 Jun 2026

India's leading banks, including State Bank of India (SBI), Axis Bank, and Bank of Baroda (BoB), are set to collectively raise at least $2 billion from international markets.

The fundraising drive will also include Power Finance Corporation.

The move comes as a response to the Reserve Bank of India (RBI)'s 1.5% fixed-rate swap incentive for external commercial borrowings (ECBs).

RBI's swap incentives and rupee stability
Incentive details

The RBI announced the swap incentives during its last monetary policy review meeting on June 5.

The move is part of a larger strategy to support the rupee, which has been depreciating at an average rate of 1% per month since FY26 began.

The rupee fell close to 97 against the dollar but has since recovered to 94.32/$1 due to expectations of peace in West Asia and increased dollar inflows.

MTN programs provide banks with quick access to funds
Fundraising prospects

SBI could raise up to $1 billion next week if market conditions are favorable.

Other banks may look at smaller amounts, possibly issues of up to $500 million.

All these financial institutions have active medium-term note (MTN) programs that they can tap on short notice, giving them an edge in this fundraising drive.

HDFC Bank's successful dollar bond sale
Market influence

HDFC Bank's successful dollar bond sale earlier this week has also prompted its peers to leverage the favorable pricing.

On Tuesday, HDFC Bank raised $750 million by selling five-year bonds to overseas investors through the GIFT City facility.

This was the bank's first overseas issue since February 2024 and was priced at 90 basis points over the five-year US Treasury.