Banks get level-playing field in ECB refinance

Currently, Indian corporates are permitted to refinance their existing ECBs at a lower all-in-cost

The Reserve Bank of India (RBI) has permitted overseas branches and subsidiaries of Indian banks to refinance the existing external commercial borrowings (ECBs), giving them a level-playing field vis-à-vis their global counterparts.

They can refinance ECBs of AAA-rated companies as well as Navratna and Maharatna public sector undertakings, by raising fresh ECBs, the RBI said in a statement on developmental and regulatory policies.

"The decision in allowing subsidiaries of Indian banks abroad to refinance AAA-rated corporates will provide a fair and just opportunity to Indian banks to book and retain good quality assets," State Bank of India Chairman Rajnish Kumar said.

Currently, Indian