HDFC Bank, Kotak And Yes Bank Explore Up To $3 Billion Overseas Fundraising

India’s private sector banks are preparing to access global debt markets, with HDFC Bank leading a group of lenders considering overseas borrowings worth as much as $3 billion through dollar bonds and syndicated loans, as per reports.

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HDFC Bank is evaluating a fundraise of up to $1 billion through a U.S. dollar bond issue, according to people familiar with the matter. Discussions with international banks are underway, and the transaction could be launched in the coming weeks, although the final structure and timing remain under consideration.

The move comes after the Reserve Bank of India (RBI) introduced a concessional foreign exchange swap facility in June to encourage foreign capital inflows. Under the scheme, banks and state-run entities can access a fixed annual swap rate of 1.5% for overseas borrowings with an average maturity of at least three years. The facility remains available until December 31.

More Lenders Consider Dollar Borrowings

Federal Bank, Kotak Mahindra Bank, RBL Bank and Yes Bank are also exploring overseas fundraising options, according to reports. Each lender is considering raising between $250 million and $500 million through either bonds or loans.

Kotak Mahindra Bank share price, Yes Bank share price and Federal Bank share price may remain in focus as investors track developments related to overseas fundraising plans. These banks have not been regular issuers in the international dollar debt market in recent years.

Representatives of HDFC Bank, Federal Bank, Kotak Mahindra Bank, RBL Bank and Yes Bank had not commented on the reported plans.

RBI Measures Support Foreign Currency Funding

HDFC Bank had earlier raised $750 million through a five-year dollar bond issue in June, marking its first

overseas debt sale since 2024. The transaction attracted strong investor participation and was priced at the bank’s narrowest spread for a dollar bond issue.

The RBI has also opened a foreign currency non-resident (FCNR) deposit window, allowing banks to mobilise foreign currency deposits from non-resident Indians at attractive rates. The facility will remain available until September 30.

Speaking during the bank’s earnings call last month, HDFC Bank Managing Director and Chief Executive Officer Sashidhar Jagdishan said the FCNR window represented an important opportunity and that the bank was focusing on attracting such deposits.

FCNR Deposits Gather Pace

According to RBI data, HDFC Bank had mobilised about $5.42 billion in FCNR deposits as of July 30. ICICI Bank, its closest peer in this segment, had collected around $6.06 billion.

Separately, State Bank of India is also considering a five-year dollar bond issue, according to reports, reflecting broader interest among Indian lenders in overseas funding channels.

The recent measures by the central bank have increased activity in India’s external debt market, with banks seeking to diversify funding sources while taking advantage of lower hedging costs available under the RBI framework.