India's youngest infrastructure lender has been actively participating in the interest-rate derivatives market, which has resulted in a decrease in India's five-year overnight index swap rate. This decline, approximately six basis points to 6.25%, has occurred since the recent US presidential election.
Despite the rise in yields on 10-year Treasuries, the lender's actions have helped stabilize local funding costs. This demonstrates the lender's ability to navigate the complexities of the current economic landscape and unintentionally benefit the broader financial environment in India.