Banks get level-playing field in ECB refinance

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

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

Currently, Indian corporates are permitted to refinance their existing at a lower all-in-cost. The overseas branches/subsidiaries of Indian are, however, not permitted to extend such refinance. 

In order to provide a level-playing field, it has been decided, in consultation with the government, to permit the overseas branches/subsidiaries of Indian to refinance The revised guidelines will be issued within a week, the central bank said.
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