At least four Indian state-run and private lenders are deferring their plans to tap the US dollar debt market as a recent spike in Treasury yields and hedging costs has made this proposition expensive, bank officials and merchant bankers said.
Canara Bank, Punjab National Bank (PNB) and Bank of India had plans to raise as much as $2.5 billion through the sale of dollar debt under the central bank's subsidised hedging facility, and had also initiated talks, but ultimately decided to not go ahead with the issuances, the bankers said.
