- January 01, 2022,is crucial for the LIBORtransition process sinceall the new transactions will be referenced to the new benchmark rates from this date as per the recommendations of RBI and other banking regulators across the world
- SBI has been one of the first banks to have signed the ISDA 2020 IBOR Fallbacks protocol on December 11, 2020, and has already demonstrated its readiness by executing several SOFR linked transactions/deals during the year 2021
Mumbai, :Country’s largest commercial bank, State Bank of India (SBI) is ready to embrace new recommended interest rate benchmarks necessitated from LIBOR cessationfor its day-to-daybusinesses and in product pricing. All the systems and processes in SBI are aligned to support transactions linked to these Alternate Reference Rates (ARR). SBI has already started offering ARR-based products to the customers through its domestic and foreign branches. Additionally, the bank is at the forefront in spreading awareness about this transition among its customers and extensive client groups through curated Knowledge Sharing Sessions.
On the imminent transition, Shri Ashwini Kumar Tewari, Managing Director (International Banking, Technology & Subsidiaries), SBIsaid, “LIBOR Transition is a significant financial event for international financial markets. As thecountry’s largest bank, SBI has been assiduously tracking the global developments in the LIBOR spaceto align with the best practices andhas proactively modified its systems and processesto embrace the change from LIBOR to ARR. Our readiness will assist thesmooth transition in embracing ARR mechanism in the Indian banking industry at large.”
