State Bank of India (SBI) has planned to take a loan of 1.25 billion dollars i.e. 10,553 crore rupees. This would be the largest dollar loan by any bank this year.
According to media reports, people connected with the case gave this information. CTBC Bank, HSBC Holdings and Taipei Fubon Bank are assisting SBI in securing this five-year loan. On these loans, SBI will have to pay 92.5 basis points more than the secured overnight financing rate. SBI is the largest bank in the country.
There is no reaction from SBI regarding this news yet
SBI is taking this loan through its branch located at Gujarat International Finance Tech-City. The loan money will be used for general business needs. However, there is no response from SBI regarding this yet.
SBI is extending foreign currency loans in collaboration with local financial institutions
SBI is extending these foreign currency loans in collaboration with some local financial institutions. Due to strict regulations in India, NBFCs are raising loans in dollars. NBFCs need money to grow their business.
Cholamandalam Investment & Finance Company Raises $300 Million Loan
Cholamandalam Investment and Finance Company is raising a $300 million loan. Bank of Baroda is raising a $75 crore loan. Despite these efforts to raise dollar-denominated loans from abroad, the value of dollar-denominated loans this year fell 27% to $14.2 billion.
In July, SBI raised a loan of $75 crore
This information is based on Bloomberg data. The reason for taking less loans in dollars this year is that no big company has increased loans so far. In July, SBI raised a loan of $75 crore. It was a three-year loan.
Image Credit: (Divya-Bhaskar): Images/graphics belong to (Divya-Bhaskar).
