First Abu Dhabi Bank is reportedly offering up to $1.5 billion in financing to non-resident Indians investing in India's foreign-currency deposit program. The UAE's largest lender is targeting customers across the Middle East and discussing arrangements with Indian banks that could provide standby letters of credit to support the funding. The facility is part of a wider effort to attract overseas funds as New Delhi looks to rebuild foreign-exchange reserves and slow the rupee's decline, with analysts estimating the program could bring in about $50 billion in deposits. The proposed structure would allow customers to borrow against their foreign-currency deposits at nine times leverage, potentially increasing foreign-currency inflows without requiring full deposit contributions. Under the special program announced in June, the Reserve Bank of India is absorbing the full hedging cost for lenders raising three- to five-year foreign-currency deposits, and some lenders are offering interest rates of up to 7.75% on five-year deposits.
HSBC Holdings PLCFAB is offering up to $1.5B in financing for India's deposit program, potentially increasing its lending business.