Foreign banks surpass JP Morgan bond inflows as largest investors: RBI

Foreign banks have become pivotal investors in India's debt market, surpassing even the net inflows into JP Morgan index-eligible bonds, states a Reserve Bank of India economic report. Since June 1 of this year, foreign portfolio investors (FPIs) injected Rs 26,251 crore into the debt segment, with foreign banks alone acquiring over $6 billion in debt. Notably, Indian government securities under the Fully Accessible Route (FAR) saw Rs 23,351 crore inflows. With the impending inclusion of Indian sovereign bonds in the JP Morgan index, FPIs have bolstered their holdings by more than $10 billion. The rupee, amid global economic fluctuations, has maintained stability, minimizing currency hedging costs.