HDFC Bank and Bank of Baroda Secures $1.5 Billion Via Overseas Loan Market

HDFC Bank and Bank of Baroda have collectively raised $1.5 billion from the overseas loan market within a week, reflecting growing global confidence in Indian banks as interest rates stabilise and liquidity conditions improve, as per The Economic Times report. 

HDFC Bank Secures $1 Billion Loan 

HDFC Bank raised $1 billion through a 3-and-a-half-year overseas loan, marking its 1st such borrowing in 2 years. The loan was extended solely by Japan’s Mitsubishi UFG Financial Group and was routed through the bank’s GIFT City branch for on-lending purposes, a relatively rare funding route for the lender.  

The loan was priced at 94 basis points above the three-month SOFR, translating to an effective rate of 5.01%, given the benchmark stood at 4.07%.  

Bank of Baroda Taps Global Lenders 

Bank of Baroda raised $500 million through a 5-year loan facility, with MUFG and HSBC participating equally. The loan was priced at 98 basis points above the three-month SOFR, implying a cost of around 5.05%.  

Neither Bank of Baroda nor HSBC commented on the transaction. The deal follows a period of sustained overseas interest in Indian banking assets, supported by strong balance sheets and steady credit growth. 

Read More: HDFC Bank, RIL, and Infosys Lead ICICI Prudential Mutual Fund’s Top Picks for November 2025! 

Conclusion 

The successful overseas fundraising by HDFC Bank and Bank of Baroda highlights the renewed global appetite for Indian banking assets, supported by stabilising rates, stronger fundamentals and improved sovereign credibility, positioning lenders favourably for future capital raising. 

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