Banks may rush to tap short loans abroad
Bankers said some lenders now plan to borrow more short-term funds, possibly at a higher rate, to finance the promised leverage to FCNR(B) clients after the Reserve Bank of India advanced the deadline for swap support.
These funds will have to be replaced with a long-term loan or bond later, leading to a temporary mismatch between banks' foreign deposits and borrowings.
5News aggregated this summary from the outlet’s public feed. The full article, with all the context, is on economictimes.indiatimes.com — the content belongs to The Economic Times.
