Shunned in India, Shadow Banks Pay More for Foreign Funds
- India non-bank finance firms have raised record overseas funds
- Foreign costs higher than onshore on hedged basis: Marwaha
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India’s shadow banks are being forced to go overseas more for money as local lenders balk at extending funds, flagging strains in a key industry for an economy that’s already sputtering.
The country’s non-banking financial companies have raised more than $2 billion of overseas bonds and loans in 2019, a record compared with the same period in previous years, according to data compiled by Bloomberg. The lifeline is welcome, even as it underscores a scramble after a string of defaults by peer IL&FS Group last year made investors wary.