Reuters Market Eye - The Reserve Bank of India's move to allow banks to raise funds from global multilateral institutions can bring inflows of about $1 billion to $2 billion, two bankers say.
Private sector lenders would be the most likely to use the window, according to these bankers, who are involved in overseas fundraising at banks but who were not authorised to talk to the media.
"Given the country risk, currently raising funds for more than one-year tenure is proving to be expensive. This route may help obtain long-term funds. We may look at three-year loans," said one of the sources, who works at a private bank.
(Reporting by Archana Narayanan)