Axis Bank

By Munsif Vengattil

BENGALURU, Aug 21 (Reuters) - India has directed Google to shut down hundreds of accounts on its Firebase web development platform after finding a pattern of criminals misusing the service to impersonate major banks and defraud people, according to government notices and a source familiar with the matter.

Online scams have become one of India's most pressing law enforcement challenges, with Indians losing nearly $2.4 billion in alleged cyber fraud in 2025, according to government data. For years, the government has gone after scammers by ordering their websites removed.

Of late, however, Indian officials have noticed a "pattern" that scammers are using the Google's app and website development tool Firebase, which has millions of users the world over, according to the source with direct knowledge of the matter.

The Indian Cyber Crime Coordination Centre (I4C) has directed at least 57 websites and databases that were hosted on Firebase be taken down in August alone, saying they were being used to distribute malware and steal sensitive financial information from victims' phones, according to three notices sent to Google and reviewed by Reuters.

There was no suggestion in the notices that Google or Firebase were in any way responsible. However, Google can be held liable for the named links if they are not taken down within three hours of the notice being issued.

"Android-based malware programs are masquerading as legitimate banking services, specifically targeting Android users with credit cards. Scammers lure victims by promoting offers such as new credit cards, reward redemptions, or credit limit upgrades," I4C said in an August 17 notice to Google, directing the removals.

The source added the total number of notices sent to Google over Firebase ran into dozens in recent months, without sharing an exact number.

Alphabet-owned GOOGL.O Google said in a statement the company has "strict policies prohibiting the use of our services for phishing, malware, or financial fraud" and works with law enforcement, including I4C, to evaluate and act on notices.

Representatives for India's home (interior) ministry, which controls the I4C, did not respond to questions.

BOOMING DIGITAL USE

Firebase is used by millions of developers worldwide to build apps and host websites. It is part of Google's cloud business, which generated nearly $25 billion in revenue in the most recent quarter.

Scam operators have been migrating to Firebase from other free tools since last year, drawn by generous free options and more capable database features, the Indian government has assessed, the source said.

Scammers are increasingly targeting India's booming digital payments ecosystem. Nearly 242 billion digital transactions were processed through India's real-time payments system alone in the year to March 2026, making it one of the world's largest digital payments markets.

Reuters reviewed three government notices sent by I4C to Google in August, accessed through Lumen, a non-profit database where companies like Google voluntarily submit content removal requests they receive.

"ANDROID GOD MODE"

Seven of the 57 websites and databases asked to be removed were phishing pages created using Firebase that mimicked top Indian banks, including State Bank of India, ICICI Bank and Axis Bank. The remaining were what the government agency said were websites created to collect data stolen from victims' phones, including credit card details and one-time passwords.

The three banks did not respond to queries from Reuters.

The fraud described in the notices worked by getting victims to install apps that looked like legitimate banking services.

One scheme exploited by scammers was PM-KISAN, a federal government programme that pays small farmers roughly 2,000 Indian rupees (about $21) every four months, according to a fourth notice and the source with direct knowledge.

Websites allegedly promised recipients help in claiming their payment, asking them to download an app to redeem the money.

Then, the app sends the user's data to the scammer's Firebase database, effectively leading to a hack of the phone where scammers can access other downloaded apps and defraud customers of their funds.

The government issued one public advisory in March, without naming Firebase, but raising concerns about such malware, widely called "Android God Mode" by cybersecurity researchers, a term describing the near-total control over victims' phones.

"These malicious apps often impersonate trusted services such as banking, government and utility platforms, and trick users into installing them through links," the advisory said.

($1 = 95.7300 Indian rupees)

(Reporting by Munsif Vengattil in Bengaluru; Editing by Aditya Kalra and Raju Gopalakrishnan)

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By Dharamraj Dhutia

MUMBAI, Aug 18 (Reuters) - Four Indian private lenders have fast-tracked plans to raise dollar bonds before the end of August, seeking to take advantage of a central bank swap facility before its early closure, after larger peers ICICI Bank ICBK.NS and Axis Bank AXBK.NS raised more than $1 billion.

Kotak Mahindra Bank KTKM.NS, YES Bank YESB.NS, IDFC First Bank IDFB.NS and Federal Bank FED.NS are together aiming to raise $1.85 billion through bond sales with maturities of up to five years, the bankers added.

Lenders are rushing to raise funds after the Reserve Bank of India last week said it would close a swap facility for FX deposits from non-resident Indians on August 31, a month earlier than planned.

Kotak Bank is leading the race as it has set its final price guidance at 108 basis points above U.S. Treasuries, 22 bps narrower than its initial guidance.

"Kotak Bank should be finalised before the end of this week, leaving the other three lenders scrambling for funds in the last week of August," one of the bankers said.

They all requested anonymity as they are not authorised to speak to the media. None of the banks responded to Reuters emails seeking comment.

YES Bank has appointed merchant bankers for a three-year bond offering, with investor calls scheduled for this week, the bankers said.

This will be the first time the private financier taps the offshore market after defaulting on its perpetual additional tier-1 bonds in 2020.

Federal Bank and IDFC First Bank, which are relatively smaller and are looking to debut in the dollar bond market, have just started scouting the market for investors, the bankers added.

The development comes after ICICI Bank raised $750 million through five-year bonds, 105 bps above Treasuries, while Axis Bank raised $300 million through three-year and three-month dollar bonds at a spread of 95 bps over Treasuries.

Indian banks have collectively raised $6.3 billion since the scheme was implemented on June 5, up from $850 million earlier this year, data from Cbonds showed, notching a record high for any calendar year.

(Reporting by Dharamraj Dhutia; Editing by Sonia Cheema)

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By Dharamraj Dhutia and Khushi Malhotra

MUMBAI, Aug 17 (Reuters) - Indian lenders are rushing dollar loan and bond issues over the next two weeks after the central bank unexpectedly advanced the end date for an FX swap facility that banks were using for hedging exposure to deposits raised from diaspora.

As part of a raft of measures to boost inflows, lenders were permitted to use these overseas borrowings to offer loans to non-resident Indians. Banks' overseas fundraising had also been subsidised.

Now, with the Reserve Bank of India announcing the closure of the forex swap window for August 31, a month earlier than initially planned, Indian private and state-run banks are on track to raise at least $5 billion through a combination of bonds and loans, four bankers said.

"Some of the fund raising plans have been brought forward to utilize the last few days," Akshay Naik, India head of debt capital markets at Citi, said.

"We will have one of the busiest windows for the next 6-8 days from India. Few institutions who are not ready may need to drop their plan if it was solely meant for FCNR leverage."

Large private-sector lenders such as ICICI Bank ICBK.NS and HDFC Bank HDBK.NS are in talks to raise about $1.5 billion each via dollar bonds and loans, while peers including Axis Bank AXBK.NS, YES Bank YESB.NS, RBL Bank RATB.NS and Kotak Mahindra Bank KTKM.NS are planning to raise at least $500 million each through overseas debt markets, bankers said.

State-run lenders State Bank of India SBI.NS, Bank of Baroda BOB.NS, Punjab National Bank PNBK.NS, Canara Bank CNBK.NS, Union Bank of India UNBK.NS, Bank of India BOI.NS and Central Bank of India CBI.NS are targeting dollar raises of $250 million to $500 million each, with the larger banks likely to target bigger issues, the bankers said.

None of the lenders replied to Reuters emails seeking comment.

All the bankers declined to be named as the discussions are private.

BANKS ON TRACK FOR RECORD DOLLAR FUNDRAISING

Indian lenders have raised a combined $5.93 billion through dollar bond sales and loans so far this year, according to LSEG data through August 11.

The tally has climbed by another $1.2 billion, following debt sales by two large state-run lenders last week.

Over the last 15 years, banks' annual foreign borrowing topped $6 billion on three occasions, including in 2013, when the RBI had opened a swap window.

"Would expect $5-7 billion of additional bond and loan issuances for the remainder of year," Naik said.

(Reporting by Dharamraj Dhutia and Khushi Malhotra; Editing by Mrigank Dhaniwala)

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MUMBAI, Aug 13 (Reuters) - India's Axis Finance ASFP.UL accepted bids worth 8.35 billion rupees ($87.50 million) for the sale of bonds maturing in two years and 11 months, three bankers said on Thursday.

The firm will pay a coupon of 7.90% and had invited commitment bids for the issue on Wednesday, they said.

The company did not respond to a Reuters email seeking comment.

Here is the list of deals reported so far on August 13:

*Size includes base plus greenshoe for some issues

($1 = 95.4250 Indian rupees)

(Reporting by Dharamraj Dhutia and Khushi Malhotra; Editing by Harikrishnan Nair)

(([email protected], [email protected]))

By Dharamraj Dhutia

MUMBAI, Aug 12 (Reuters) - State Bank of India SBI.NS, the country's largest lender, drew strong demand in its return to the public dollar bond market after nearly a year, with pricing tightening sharply from initial guidance, three merchant bankers said on Wednesday.

SBI raised $500 million through a five-year dollar bond issued via its London branch, the lender said in a stock exchange filing late on Tuesday.

These bonds will be priced at a spread of 88 basis points over U.S. Treasuries, sharply below initial guidance of 120 bps. The notes carry a coupon of 5.25%, payable semi-annually.

The final spread was broadly in line with CreditSights' expectation of 90 basis points, although the research firm expects it to tighten further to around 80 basis points in the secondary market.

Spreads on dollar bonds issued by Indian borrowers have widened in recent weeks on expectations of heavy supply following the Reserve Bank of India's swap concession window, while demand has been tempered by attractive rates on foreign-currency deposits.

"As we had anticipated, some of this spread premium has begun to fade as supply is absorbed... We have an outperform recommendation on SBI," CreditSights analysts said in a note.

The lender witnessed tightest pricing, after ICICI Bank sold notes at 100 bps, while HDFC Bank sold notes at a spread of 90 bps over Treasuries.

SBI had planned to raise $1 billion through a public dollar bond issue in June, but deferred the sale due to higher borrowing costs following heavy issuance by Indian lenders.

The bank subsequently raised $600 million through a private placement of three-year dollar bonds at a spread of 100 basis points over the Secured Overnight Financing Rate (SOFR).

The issue comes at a time when Indian banks are making a beeline for dollar issues after the RBI's swap facility announced in June made overseas borrowing cheaper.

Large private lenders, including HDFC Bank, Axis Bank and ICICI Bank have raised funds through dollar bonds in June and July.

Meanwhile, bankers expect SBI to tap the market again in a few weeks for raising dollars, as the board has approved raising of up to $2 billion through bonds sold in dollar or any other major currency in this financial year.

(Reporting by Dharamraj Dhutia; Editing by Sherry Jacob-Phillips)

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The author is a Reuters Breakingviews columnist. The opinions expressed are her own.

By Shritama Bose

MUMBAI, Aug 11 (Reuters Breakingviews) - That Indian banks would sport higher book value multiples than their Western peers used to be almost as reliable as the sun coming up in the morning. Even after a lending crisis last decade, the country retained the lead, with $118 billion HDFC Bank HDBK.NS often at the front. Not any longer. A resurgence of players like HSBC HSBA.L and JPMorgan JPM.N as well as the rise of India’s capital markets have both landed blows on the sector. In HDFC’s case, its own governance and margin woes have completed a triple whammy.

The Mumbai-based bank run by Sashidhar Jagdishan currently trades at less than 2 times its estimated book value 12 months from now, per LSEG data. A few years ago, most developed-market peers could only dream of such a level. Now, thanks to resurgent earnings and, in the U.S. at least, a regulatory proposal to cut capital requirements, they sport book multiples most have not worn since the 2008 financial crisis. JPMorgan’s, for example, is now at 2.5 times; the new king of the metric is $206 billion Commonwealth Bank of Australia CBA.AX at 3.7 times.

Meanwhile, many Indian banks are struggling to hoover up low-cost deposits as savers look for higher yields in the stock market. That’s hurting net interest margins, with HDFC’s and Axis Bank's expected to fall again this financial year, per estimates collated by Visible Alpha. Industry-wide bank deposits dropped to around one-third of household financial savings in the 13 years to the end of March 2025, while equity and mutual funds grew sevenfold to over 15%, government data show.

HDFC, though, has also shot itself in the foot. In 2020 the Reserve Bank of India barred it from issuing new credit cards after recurring online shutdowns. A 2023 merger with its mortgage-lender parent failed to live up to its promise. In March its chair resigned citing ethical differences with management. Last month the board fined top executives including Jagdishan for improprieties in deposit pricing while exonerating their actions as "business overreach". The successive crises reflect poorly on Aditya Puri, HDFC's Managing Director and CEO from its inception in 1994 until 2020.

It’s not alone. The $41 billion Kotak Mahindra Bank KTKM.NS trades at 2.5 times forward book value that’s half its 2019 peak, having been beset by a poorly handled leadership transition and business restrictions akin to HDFC's.

Lifting those curbs has done little for either firm’s valuation. Not all the country’s lenders are suffering from valuation blues: $107 billion ICICI Bank ICBK.NS has undergone a successful turnaround and trades at nearly 3 times book. But HDFC’s path back to the top has too many obstacles.

Follow Shritama Bose on LinkedIn and X.

CONTEXT NEWS

HDFC Bank on July 27 said it would issue warning letters and impose a penalty of 100,000 ​rupees ($1,045.51) each on CEO Sashidhar Jagdishan, its chief financial officer ​and its head of retail assets for their role in offering preferential deposit rates to a state agency.

The bank's board concluded that its executives involved in setting deposit rates for the agency ​had engaged in business overreach, rather than acting for ‌personal gain.

(Editing by Antony Currie; Production by Aditya Srivastav)

((For previous columns by the author, Reuters customers can click on BOSE/[email protected]))

Adds details on subsidised foreign currency deposits

By Nishit Navin and Ashwin Manikandan

Aug 7 (Reuters) - State Bank of India SBI.NS posted a larger-than-expected quarterly profit on Friday, helped by healthy loan growth, pushing shares as high as 3.6%.

Credit growth has been robust in Asia's third-largest economy as firms borrow due to rising working capital needs and households make a beeline for consumption and gold-backed loans.

The state-run SBI posted a 10.2% rise in net profit to 211.21 billion rupees ($2.22 billion), above analysts' estimates of 191.02 billion rupees, as per data compiled by LSEG.

Its gross loan book grew 18.63% year-on-year, while deposits grew 9.73%. Loan growth at SBI, the country's largest lender, is closely watched as an indicator of broader economic trends.

Across the sector, analysts and investors have also been closely watching bank margins as strong loan growth has coincided with intense competition for deposits at a time when deposit growth has lagged growth in loans.

SBI's domestic net interest margin expanded 7 basis points to 3% from three months ago. Net interest income, the difference between interest earned on loans and paid on deposits, grew nearly 15% year-on-year to 469.92 billion rupees for the quarter ended June 30.

Top lenders such as HDFC Bank HDBK.NS, Axis Bank AXBK.NS and Kotak Mahindra Bank KTKM.NS reported sequential margin declines in the first quarter.

SBI's gross non-performing assets improved to 1.47% of total loans from 1.49% three months earlier and 1.83% a year earlier.

Slippages, or loans that turned bad, stood at 70.46 billion rupees in the June quarter, compared to 55.21 billion rupees the previous quarter and 79.45 billion rupees a year earlier.

SBI's shares trimmed some gains to close 1.1% higher.

SUBSIDISED FOREIGN CURRENCY DEPOSITS FROM NON-RESIDENT

SBI said it has mobilised $6 billion in subsidised foreign currency deposits till now, helped by the Reserve Bank of India's concessional swap facility, and is on track to raise $10 billion.

The RBI introduced the swap facility in June to encourage foreign currency inflows, and banks have raised $36.73 billion through FCNR(B) deposits as of July 31, according to data from the RBI.

($1 = 95.2725 Indian rupees)

(Reporting by Nishit Navin in Bengaluru; Editing by Mrigank Dhaniwala and Janane Venkatraman)

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By Dharamraj Dhutia

MUMBAI, July 23 (Reuters) - India's ICICI Bank ICBK.NS has provided an initial price guidance for a five-year dollar bond leveraging the central bank's lower-cost hedging facility, as the private lender returns to the dollar debt market after nearly nine years, two bankers aware of the matter said on Thursday.

The lender is expected to raise at least $500 million through this issue and has provided guidance of a spread of 130 basis points over the corresponding U.S. Treasury yield, the bankers added, requesting anonymity as they are not authorised to speak to the media.

The lender updated its Global Medium Term programme on Wednesday and immediately started the process of raising funds.

ICICI Bank did not immediately respond to a Reuters request for comment.

"The bank should finalise the pricing before the end of Friday, and we are expecting at least 30 bps of a compression from the initial guidance," one of the bankers said.

The transaction would mark ICICI Bank's first dollar bond issuance since December 2017, when it raised $500 million through 10-year bonds at a coupon of 3.80%.

CreditSights has a market perform recommendation on ICICI Bank's dollar bonds.

The Reserve Bank of India last month introduced a swap facility allowing eligible external commercial borrowings by banks and state-owned companies to be hedged at a fixed rate of 1.5% per annum, compounded semi-annually.

The measure significantly lowers hedging costs, making overseas dollar fundraising more attractive.

The nation's second-largest private bank will join peers HDFC Bank and Axis Bank, which raised $750 million through five-year bonds and $800 million via a dual-tranche dollar bond issue in June.

The proceeds from the issue would be used for general corporate purposes, the bankers added.

The offering will be rated Baa3 by Moody's and BBB by S&P Global, in line with the issuer, and would be sold through its GIFT City branch.

(Reporting by Dharamraj Dhutia; Editing by Rashmi Aich)

(([email protected];))

** Shares of Axis Bank AXBK.NS down about 5% to 1,263.5 rupees--on track for biggest % fall since December 16, 2026

** On July 18, reported Q1 net interest margin at 3.46% vs 3.80% in the year-ago period--key profitability metric for banks

** Systematix says management stated NIMs has bottomed out; brokerage revises TP to 1,570 rupees vs 1,600 rupees earlier, maintains "Buy" rating

** NIMs compressed a sharper-than-expected, dragged by seasonal agri reversals, adverse balance sheet mix, and interest spread pressure--Citi; brokerage maintains "buy", TP of 1,620 rupees

** Although NIM declined QoQ, management reiterated its structural NIM guidance of ~3.8% over the next 12-15 months with margin normalization expected to be driven by an improving balance sheet mix, lower funding costs and productivity gains--Centrum; TP reduced to 1,610 rupees vs 1,720 rupees; maintains "Buy" rating

** 36 out of 40 analysts rate the stock "buy" or higher, median TP of 1,593.50 rupees

** YTD, stock down 0.37%

(Reporting by Saikeerthi in Bengaluru)

(([email protected]; (+91) 8296756080))

July 7 (Reuters) - Axis Bank Ltd AXBK.NS:

• RBI APPROVAL ON RE-APPOINTMENT OF N. S. VISHWANATHAN AS A NON EXECUTIVE (PART TIME) CHAIRMAN)

Further company coverage: AXBK.NS

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Updates for morning trade

By Bharath Rajeswaran and Vivek Kumar M

July 6 (Reuters) - Indian shares advanced on Monday, led by HDFC Bank and Axis Bank on strong quarterly business updates, while lower crude oil prices also aided sentiment.

The benchmark Nifty 50 .NSEI rose 0.48% to 24,385.4, while the BSE Sensex .BSESN added 0.5% to 78,146.72, as of 10:11 a.m. IST.

The Nifty and Sensex have logged four straight weekly gains in their longest winning streak of 2026, rising 3.9% and 4.7% respectively, supported by lower oil prices as U.S.-Iran peace efforts persist and concerns over a near-term U.S. rate hike ease.

Twelve of the 16 major sectors logged gains. High-weight banks .NSEBANK and financials .NIFTYFIN rose 0.7% each.

HDFC Bank HDBK.NS climbed 2.7% after reporting a 15.4% increase in gross advances during the June quarter. Axis Bank AXBK.NS gained 1.7% after its business update over the weekend reflected 18.8% growth in gross advances.

Kotak Mahindra Bank KTKM.NS lost 3.4% after posting a sequential moderation in both loan and deposit growth.

"Most of the banks which reported June quarter provisional numbers have met or exceeded our estimates, with the exception of Kotak and RBL," said Piran Engineer, senior research analyst at CLSA.

"While overall growth has been strong, we remain watchful of the granularity within loan book expansion and potential impact of declining CASA ratios on margins," Engineer said.

A narrowing in rainfall deficit to 24% as of July 5 from 40% at the end of June as India's crucial monsoon season progresses, and a likely moderation in foreign outflows will be key for the South Asian nation's markets in the near-term as the Iran war's impact on corporate earnings unfolds, analysts at Equinomics Research, Shriram Life Insurance and Lighthouse Canton said.

Foreign portfolio investors purchased stocks worth 13.55 billion rupees ($142.32 million) on Friday, provisional data showed, marking a third consecutive session of net buying.

Among stocks, Nykaa-parent FSN E-Commerce FSNE.NS gained 2.3% after its quarterly business update suggested sustained momentum in revenue growth.

(Reporting by Vivek Kumar M and Bharath Rajeswaran; Editing by Ronojoy Mazumdar)

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By Dharamraj Dhutia

MUMBAI, July 3 (Reuters) - India's ICICI Bank ICBK.NS plans its first dollar bond sale in nearly nine years, joining peers HDFC Bank and Axis Bank in leveraging the central bank's lower-cost hedging facility for foreign-currency issuance, two bankers said on Friday.

The lender is expected to raise at least $500 million through a likely five-year bond issue, according to the bankers familiar with the matter.

However, the issuance is unlikely before the second half of August, as ICICI Bank is awaiting its quarterly financial results later this month and must complete the renewal of its Global Medium Term Note programme, the bankers said.

"There are plans to tap the dollar bond market, but it may take 45-60 days for the actual issuance to happen as a lot of procedures are still pending," one of the bankers said.

The bankers requested anonymity as they are not authorised to speak to media. ICICI Bank did not immediately respond to a Reuters request for comment.

If completed, the transaction would mark ICICI Bank's first dollar bond issuance since December 2017, when it raised $500 million through 10-year bonds at a coupon of 3.80%.

The fundraising comes after the Reserve Bank of India in June introduced a swap facility allowing eligible external commercial borrowings by banks and state-owned companies to be hedged at a fixed rate of 1.5% per annum, compounded semi-annually.

The measure significantly lowers hedging costs, making overseas dollar fundraising more attractive.

HDFC Bank HDBK.NS became the first lender to use the new facility, raising $750 million through five-year bonds in June. Axis Bank AXBK.NS followed with an $800 million dual-tranche dollar bond issue.

(Reporting by Dharamraj Dhutia; Editing by Sherry Jacob-Phillips)

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MUMBAI, July 1 (Reuters) - India's Axis Finance ASFP.UL plans to raise up to 6 billion rupees ($63.14 million), including a greenshoe option of 5 billion rupees, through the sale of bonds maturing in three years and one month, three bankers said on Wednesday.

It will pay a coupon of 7.81% and has invited commitment bids for the issue on Thursday, they said.

The company did not immediately respond to a Reuters email seeking comment.

Here is the list of deals reported so far on July 1:

* Size includes base plus greenshoe for some issues

($1 = 95.0200 Indian rupees)

(Reporting by Dharamraj Dhutia and Khushi Malhotra; Editing by Harikrihnan Nair)

(([email protected], [email protected]))

June 30 (Reuters) - Axis Bank Ltd AXBK.NS:

• AXIS BANK - RECEIVES FINAL LISTING APPROVAL FROM IFSC FOR US$800 MILLION NOTES UNDER US$5 BILLION GMTN PROGRAMME

• AXIS BANK - LISTING INCLUDES US$500 MILLION ADDITIONAL TIER 1 NOTES AND US$300 MILLION SENIOR NOTES

Source text: ID:nNSE4HF00P

Further company coverage: AXBK.NS

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Axis Bank’s Chief Financial Officer Puneet Sharma resigned on June 28, 2026, and will serve until the close of business on August 31. In his resignation letter, Sharma cited that his core mandate of building robust financial controls, a resilient balance sheet, and a strong functional team was largely complete after more than six years in the role. The board, at its meeting on June 29, also approved the re-appointment of CH S S Mallikarjunarao as an independent director for a second four-year term from February 1, 2027, and Munish Sharda as executive director for a further three years from February 27, 2027, pending regulatory and shareholder approvals.

Powered by Tijori

By Khushi Malhotra

MUMBAI, June 29 (Reuters) - India Infrastructure Finance Company (IIFCL) is planning to borrow $1 billion from overseas investors, which could be its biggest foreign-currency loan, while also exploring a separate $400 million funding from the Asian Development Bank, an executive said.

The Indian company is the latest to tap into the foreign lending market after the Reserve Bank of India introduced a series of measures to boost dollar inflows and support the rupee. The measures include allowing state-run firms and banks to raise foreign currency funds to hedge their forex exposure at a subsidised rate.

The $1 billion loan will be for 15 years at an interest rate of under 7%, and the company is talking to the Asian Development Bank for a separate 20-year loan of roughly $400 million, Palash Srivastava, IIFCL deputy managing director, told Reuters on Monday.

IIFL doubled the 15-year loan's size to $1 billion from an initial $500 million after the RBI's incentive, he added.

Reuters has previously reported that three Indian development finance institutions plan to raise at least $1.5 billion through foreign-currency bank loans under the RBI facility.

Further, IIFCL is weighing a debut dollar bond of around $100 million by year-end, Srivastava said.

"The bond will likely be in the three- to five-year tenor,” he added.

Dollar borrowings have picked up following the opening of the RBI's subsidised borrowing window.

HDFC Bank raised $750 million via a five-year bond, while Axis Bank priced $800 million through a dual-tranche dollar bond sale. State-run Power Finance Corp raised $300 million via dollar bonds.

State Bank of India and Bank of Baroda are also planning overseas fundraising.

(Reporting by Khushi Malhotra; Editing by Harikrishnan Nair)

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By Dharamraj Dhutia and Khushi Malhotra

MUMBAI, June 25 (Reuters) - Three Indian development finance institutions are planning to raise at least $1.5 billion through foreign-currency bank loans under the central bank's discounted overseas borrowing facility, three people familiar with the plans said.

The institutions are favouring loans over bonds because none has issued dollar debt before and the process is simpler, the sources added.

The National Bank for Agriculture and Rural Development (NABARD), the Small Industries Development Bank of India (SIDBI) and the National Bank for Financing Infrastructure and Development (NaBFID) are each seeking to raise at least $500 million through foreign-currency loans, with NaBFID the furthest along after initiating talks with lenders, an executive confirmed.

"We expect to raise up to $2 billion via ECBs in this financial year. At present, we are planning to raise $500 million through the ECB route, and we have already started our activity and are exploring in the market," NaBFID managing director Rajkiran Rai told Reuters.

"With the RBI window opening, ECBs work out much cheaper. For the loan, the landed cost could be in the range of 6.5%-7.0%, NaBFID's Rai added.

The institution had also raised $125 million via a smaller dollar loan tranche in March, the sources added.

The sources declined to be identified as they are not authorised to speak to the media. NABARD and SIDBI did not respond to Reuters' requests for comment.

NABARD and SIDBI, which have not yet tapped foreign funding, have initiated preliminary talks and could approach the market over the next 30 to 40 days, according to all the sources.

"There is a lengthy procedure involved in a debut dollar bond sale, and it is time-consuming. If an institution is not going to be a regular issuer like EXIM Bank, it makes little sense to choose bonds over loans," one of the sources said.

Based on the credit ratings, dollar loans may be just marginally expensive than bonds for now.

The Reserve Bank of India earlier this month allowed banks and state-run companies raising funds overseas to access a subsidised hedging facility, lowering the cost of managing currency risk as part of a broader effort to attract dollar inflows and support the rupee.

Since then, HDFC Bank HDBK.NS, Axis Bank AXBK.NS and Power Finance Corp PWFC.NS have raised a combined $1.85 billion through dollar bonds, while Bank of Baroda BOB.NS and State Bank of India SBI.NS are preparing for similar issues.

(Reporting by Dharamraj Dhutia and Khushi Malhotra; Editing by Nivedita Bhattacharjee)

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MUMBAI, June 24 (Reuters) - India's Axis Bank AXBK.NS said it has priced $800 million of dollar notes, including a $500 million perpetual note, according to an exchange filing on Tuesday.

Here are the details:

• The perpetual notes carry a 6.875% annual coupon, payable semi-annually.

• The $300 million five-year bond will carry a 5.348% coupon, also payable semi-annually.

• The notes will be issued on June 30 and listed on the India International Exchange IFSC and NSE IFSC.

• The issuance follows the Reserve Bank of India's move to offer a hedging window, allowing lenders to hedge overseas borrowings at subsidised rates, which could boost dollar inflows.

• HDFC Bank raised $750 million last week via a five-year bond.

(Reporting by Khushi Malhotra; Editing by Sonia Cheema)

(([email protected]; x.com: @_KhushiMalhotra;))

By Dharamraj Dhutia

MUMBAI, June 23 (Reuters) - India's state-run Power Finance Corp PWFC.NS has accepted bids worth $300 million for a five-year dollar bond issue, becoming the first non-bank lender to tap the central bank's subsidised hedging facility for overseas borrowings, three bankers said.

The bonds were priced at a spread of 105 basis points over U.S. Treasuries, giving a yield of 5.327%, well inside the initial guidance of 130 basis points, indicating strong investor demand.

"The company chose to accept a lower quantum as this was their first tranche, but they could explore this route again when treasury yields ease," one of the bankers said on Tuesday.

Earlier, PFC had told bankers that it intended to raise $500 million, but ultimately settled for a smaller amount, as bankers said the spread would have widened had it pursued the full quantum.

The bankers requested anonymity as they are not authorised to speak to media, while PFC did not reply to a Reuters email seeking comment.

This comes after India's top private lender, HDFC Bank HDBK.NS sold $750 million of five-year dollar bonds last week at a spread of about 90 basis points over U.S. Treasuries.

Earlier this month, the RBI said external commercial borrowings by banks and state-run companies would qualify for a subsidised hedging facility, helping cut the cost of managing currency risk.

The step forms part of a wider RBI push to draw in dollar inflows and bolster the rupee.

Lenders Bank of Baroda and Axis Bank have finalised bankers for their planned dollar bond sales, and may set the pricing on them before the end of the week.

(Reporting by Dharamraj Dhutia; Editing by Nivedita Bhattacharjee)

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By Dharamraj Dhutia

MUMBAI, June 22 (Reuters) - Indian lenders are on course to lock in pricing for $1.5 billion of bond issues this week, as a cheaper hedging facility spurs a rush in foreign-currency issuance, three bankers said on Monday.

State-run financier Power Finance Corp PWFC.NS aims to sell about $500 million of bonds, and has given an initial price guidance of a yield spread of 130 basis points over U.S. Treasuries, the bankers said, making it the first non-bank lender to tap dollar bonds after India earlier this month opened a forex swap facility as part of wider measures to help the rupee.

"We expect the pricing for the PFC bond issue to ease to around 100 bps over Treasury," one of the bankers said.

State-run Bank of Baroda BOB.NS will sell $500 million of five-year dollar bonds this week. Private sector peer Axis Bank AXBK.NS also plans to sell perpetual dollar bonds worth at least $500 million, according to the bankers.

"We are expecting bonds of banks to see very strong demand, as such issuances are rare in the dollar market," the second banker said.

The bankers did not want to be identified as they are not authorised to speak to the media.

Power Finance Corp, Bank of Baroda and Axis Bank did not respond to Reuters emails seeking comment.

India's top private lender, HDFC Bank HDBK.NS, sold $750 million of five-year dollar bonds last week at a spread of about 90 basis points over U.S. Treasuries.

Bank of Baroda and Axis Bank have finalised bankers for the issues and could raise the size of their offerings if the pricing is favourable, one of the bankers said.

(Reporting by Dharamraj Dhutia; Editing by Mrigank Dhaniwala)

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MUMBAI, June 11 (Reuters) - India's Axis Finance has accepted bids worth 8 billionrupees ($83.64 million), through floating-rate bonds maturing in two years and seven months, three bankers said on Thursday.

The bonds will carry an initial coupon of 7.70%, with subsequent quarterly resets linked to the three-month Treasury bill yield plus a spread of 215 basis points, they said, adding that the company has invited commitment bids for the issue on Wednesday.

The company did not immediately respond to a Reuters email seeking comment.

Here is the list of deals reported so far on June 11

*Size includes base plus greenshoe for some issues

($1 = 95.6525 Indian rupees)

(Reporting by Dharamraj Dhutia and Khushi Malhotra; Editing by Nivedita Bhattacharjee)

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MUMBAI, June 9 (Reuters) - India's Axis Finance ASFP.UL plans to raise up to 8 billion rupees ($83.68 million), including a greenshoe option of 6 billion rupees, through a sale of floating-rate bonds maturing in two years and seven months, three bankers said on Tuesday.

The bonds will carry an initial coupon of 7.70%, with subsequent quarterly resets linked to the three-month Treasury bill yield plus a spread of 215 basis points, they said, adding that the company has invited commitment bids for the issue on Wednesday.

The company did not immediately respond to a Reuters email seeking comment.

Here is the list of deals reported so far on June 9:

*Size includes base plus greenshoe for some issues

($1 = 95.6000 Indian rupees)

(Reporting by Dharamraj Dhutia and Khushi Malhotra; Editing by Sonia Cheema)

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By Vibhuti Sharma

MUMBAI, June 4 (Reuters) - India's red-hot initial public offering market may look irresistible as foreign firms line up for listings, but the rush is not about raising funds to expand in a fast-growing market; it's about sending billions of dollars back to headquarters.

Just one of six foreign-based companies that listed their Indian units in Mumbai since 2024 raised new funds, with all others structured purely as secondary offerings - or offer for sale (OFS), where existing shareholders sell their holdings to the public without raising any new funds, according to data from Prime Database, an Indian market research firm.

Foreign-based parents of companies that have long invested in India pocketed nearly $5 billion through such secondary-offering IPOs, with Hyundai Motor 005380.KS and LG Electronics 066570.KS accounting for more than 80% of those payouts, the data showed. Simply put, for each dollar raised in these IPOs taken together, more than $59 went out.

And the trend is continuing: the planned $1 billion IPO of Walmart's WMT.O Indian payments arm and Modern Times Group's MTGb.ST $335 million IPO of its local gaming unit will both take the OFS route.

This week, Coca-Cola KO.N said the planned listing of its Indian bottler will have the American firm sell a portion of its stake. Banking sources said Carlsberg's CARLb.CO planned Indian IPO will also have no new funds raised - it will also be an OFS.

The trend, which bankers and economists say is a result of sky-high stock valuations in India in recent years, shows that the prospect of a lucrative partial exit from Indian investments has become more attractive to many foreign companies than raising new funds to expand.

Global companies are pursuing "India listings as this provides them liquidity as well as a positive impact on the market cap for their parent," said Prashant Gupta, a partner at law firm Shardul Amarchand, which advised both Hyundai and LG on their OFS-structured IPOs.

Modern Times declined to comment, while Carlsberg said it is "exploring different options for increasing shareholder value which may potentially include an" Indian IPO.

Walmart's Indian unit, PhonePe, Hyundai, LG and other companies did not respond to Reuters requests for comment.

RUPEE WOES

The OFS trend comes at a troubling time for the Indian rupee, which has fallen 13% against the U.S. dollar since 2024 and 6% so far this year. That has raised concerns that the IPO-linked repatriations are compounding already heavy foreign capital outflows.

In January, MUFG Bank wrote that its analysis "shows one important contributor to Indian rupee weakness has been the strong IPO market in India."

So far this year, foreign portfolio investors have sold more than $23 billion of their holdings, surpassing 2025's record outflows of $18.9 billion.

IPO-linked capital outflows are "exerting a steady, though not abrupt, depreciation bias on the rupee," said Tanay Dalal, a senior vice president of business and economics research at Axis Bank.

Government officials and regulators have not indicated that they would try to curb the OFS trend, though India's Chief Economic Advisor V Anantha Nageswaran warned in November that IPOs had "increasingly become exit vehicles for early investors rather than mechanisms for raising long-term capital."

"This undermines the spirit of public markets," he said. He did not respond to Reuters queries.

THE VALUATIONS GAME

India was the world's second-largest IPO market in 2025 after the U.S., with 367 listings raising $21.8 billion, according to LSEG data. Its markets surged to record highs over the last two years before starting to struggle this year due to uncertainties related to the U.S.-Israeli war on Iran.

Still, a record $26 billion worth of IPOs are awaiting approvals, according to regulatory data.

The appeal for using the OFS route is rooted in valuations.

Indian-listed units of foreign firms have consistently traded at multiples that dwarf their parents. Add to that a growing group of domestic investors that has resulted in high valuations in India over the past two years, making local listings attractive, lawyers and bankers said.

At least six foreign companies that listed their Indian units in recent years trade at a significant premium to their overseas parents, according to LSEG data.

Nestle India, which listed in 1969, has a price-to-earnings ratio - a measure of stock valuations relative to profit - of nearly 77 times, versus 22 times for Swiss parent Nestle NESN.S. LG Electronics India LGEL.NS, which listed last year, trades at nearly 59 times versus 44 times for its South Korean parent, LG Electronics 066570.KS.

On the day Hyundai 005380.KS listed its Indian unit in 2024, it was valued at about $18 billion, roughly 40% of its parent's market capitalisation.

"What's driving this is smart capital allocation - asset owners capitalizing on cross-market valuation arbitrage," said Abhishek Gang, a director at U.S.-based investment bank Houlihan Lokey.

Since 2024, the IPOs of the Indian units of Italian transmission systems maker Carraro CARD.NS, Norwegian consumer goods group Orkla ORKL.NS, and American auto parts maker Tenneco Clean Air TENN.NS all had OFS structures.

Only one - Britain-based Bupa's India unit, Niva Bupa Health Insurance NIVA.NS - structured its local IPO as a mix of fresh fundraising of $84 million and a larger $146 million OFS component.

"The final structure balanced the company's capital requirements with shareholder objectives, with the fresh capital supporting growth plans and the OFS providing partial liquidity to existing investors," Niva Bupa said in a statement to Reuters.

(Reporting by Vibhuti Sharma in Mumbai; Editing by Aditya Kalra and Thomas Derpinghaus)

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