Chennai-based Indian Bank plans to raise another $500 million through external commercial borrowings (ECB) by the end of December, taking its total ECB raising to $1 billion, MD & CEO Binod Kumar said. The bank will raise $150 million shortly, with the remaining amount to be secured by December-end, according to bfsi.economictimes.indiatimes.com.
Kumar stated that the bank has already raised $500 million through ECBs and is targeting an additional $500 million despite the current unfavorable market conditions. He noted that Indian Bank is securing good rates on ECBs and is confident about making a margin. The bank is leveraging the RBI’s concessional US dollar-rupee swap facility for eligible ECBs and overseas foreign currency borrowings, which remains available until December 31, 2026.
The move to raise $1 billion through ECBs reflects Indian Bank’s strategy to tap foreign currency markets amid domestic liquidity challenges. The RBI’s swap facility aims to encourage foreign currency inflows, making ECBs more attractive despite market volatility. Indian Bank’s deployment of funds raised through FCNR(B) deposits was completed by September, signaling active management of its foreign currency resources.
Indian Bank’s total ECB target of $1 billion by December-end underscores its commitment to diversify funding sources. The bank’s MD & CEO Binod Kumar confirmed that the $150 million tranche will be raised shortly, with the balance secured before year-end, as per bfsi.economictimes.indiatimes.com.