Banking & NBFCs · Daily brief
The bank is testing overseas debt markets for a benchmark-sized US dollar issuance as domestic deposit growth lags credit growth.
ICICI Bank is exploring the global bond market to raise $500 million. This would be its first benchmark-sized US dollar bond issuance since December 2017.
The move comes as Indian banks face a domestic liquidity squeeze, with credit growth outpacing deposit growth. Banks are competing hard for low-cost retail rupee deposits to fund an ongoing corporate credit boom.
Domestic borrowing costs have risen as liquidity has tightened. Even after accounting for currency hedging costs, raising dollars overseas can work out cheaper than raising an equivalent amount domestically.
Tapping the offshore dollar bond market also diversifies ICICI Bank's funding base beyond domestic retail depositors, reducing reliance on one liability source in a volatile rate environment.
More on ICICI Bank
Sources
Keep reading
Free daily briefing
The same daily intelligence 30,000+ CXOs, DSAs and finance professionals follow on LinkedIn — with the Finsamudra take on what it means for lending.
-800x450.jpg&w=3840&q=75)
-800x450.jpg&w=3840&q=75)
-800x450.jpg&w=3840&q=75)
-800x450.jpg&w=3840&q=75)
-800x450.jpg&w=3840&q=75)
-800x450.jpg&w=3840&q=75)
-800x450.jpg&w=3840&q=75)