Banks yet to take up RBI governor Raghuram Rajan's offer on easier global funding

Bankers are worried about the reaction of regulators overseas and the use of funds when there is not much demand for loans. There is also apprehension that the cost of fund may be on the rise after the jump in the US treasury yields to 3%. 

"If you raise money overseas and ship the money home that is taken very badly by the regulators there," Pratip Chaudhuri, chairman at State Bank of IndiaBSE -0.80 %, said. "It's not as simple as it is made out to be," he said. Chaudhuri said SBI has raised external funds through medium-term notes (MTN) issue— short-term money that is more plentiful — which are being deployed for financing exporters. 

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