NEW DELHI: Shares of Axis Bank gained 0.5% in early trading in Mumbai on Wednesday after the lender said it had become the first Indian private bank to secure a term Secured Overnight Financing Rate deal linked to trade finance.
At 09:450 hours (IST), shares of Axis Bank traded at Rs 787.63, registering a gain of around 0.5% from the previous close.
The deal was reached with Hindalco Industries and benchmarked to a 90-day SOFR financed by Axis Bank’s GIFT City branch, the lender said, adding that the GIFT City branch had set up a loan book exceeding $1 billion.
RBI had in June advised banks to desist from creating new transactions using the London Interbank Offered Rate as a benchmark, given that the global financial system has now commenced the process of phasing out LIBOR as a reference rate.
