Mumbai, January 11, 2022: IDBI Bank today announced that it has started offering products benchmarking to Alternative Reference Rates (ARRs) thus replacing London Inter-Bank Offered Rate (LIBOR) in line with regulatory guidelines. With effect from January 1, 2022, all the new transactions are being referenced to the ARRs. The Alternative Reference Rates (ARRs) include Secured Overnight Financing Rate (SOFR) for USD transactions, Sterling Overnight Interbank Average (SONIA) for GBP transactions, etc.
The transition away from the London Interbank Offered Rate (LIBOR) is a global phenomenon and is one of the important events.
The Bank has already undertaken transactions benchmarking to ARRs through its IBU GIFT City Branch and India Operations. The Bank has once again exhibited its ability to adapt to the changes and continue to offer superior services to its clients across product lines.
To continue serving its clients unhindered in the transition from LIBOR to different Alternative Reference Rates (ARRs), Bank undertook extensive preparation to manage various modifications in its systems and processes. During the transition phase, Bank continuously engaged with its clients to keep them abreast of the market developments on transition away from LIBOR.