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SBI set to embrace new benchmarks in LIBOR transition

Country’s largest lender, (SBI) is set to embrace new recommended interest rate benchmarks necessitated as the traditional rate gauge London Interbank Offered Rate (LIBOR) will cease to exist for its day-to-day businesses and in product pricing.

All the systems and processes in SBI are aligned to support transactions linked to these Alternate Reference Rates (ARR), the bank said in a release.

“LIBOR Transition is a significant financial event for international financial markets,” said Ashwini Kumar Tewari, Managing Director (International Banking, Technology & Subsidiaries), SBI. “As the country’s largest bank, SBI has been assiduously tracking the global developments in the LIBOR space to align with the best practices and has proactively modified its systems and processes to embrace the change from LIBOR to ARR.”

“Our readiness will assist the smooth transition in embracing ARR mechanism in the Indian banking industry at large,” he said.

The banking behemoth 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.

Beginning the new year, it is crucial for the LIBOR transition process since all 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.

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