RBI Boost Lifts Bank Stocks

Indian banking stocks rose after the Reserve Bank of India introduced a concessional forex swap facility for lenders raising funds through overseas foreign currency borrowings. The measure is part of a broader effort to attract foreign capital and strengthen the economy as it faces inflationary and growth pressures linked to the prolonged Iran conflict.

The new facility allows banks to access subsidised currency swaps for overseas borrowings with a minimum maturity of three years. Analysts estimate Indian banks could potentially raise up to $25–30 billion in fresh overseas funding. The move is also expected to support non-resident Indian (NRI) deposits, helping improve India’s balance of payments position.

Investors welcomed the announcement, pushing banking stocks higher, with major lenders such as State Bank of India and ICICI Bank gaining during trading. Market experts say the scheme will improve banks’ funding mix by increasing stable medium-term foreign currency liabilities while reducing dependence on domestic deposits.