RBI's FX Swap Bonanza: Banks Feast on $136B While Regulators Sound Alarms

Banks are swimming in foreign currency after the RBI's concessional swap window closed with a thunderous $136.4 billion in total inflows. HDFC Bank alone grabbed $12 billion at a sweet 6.25%, directly tackling its post-merger credit-to-deposit ratio problem. GIFT IFSC banking units channeled $52 billion of the total, with veteran banker Uday Kotak calling it "excellent performance" that signals India's rise as a global financial hub. This liquidity...