Indian Bank raises $400 million for four years

State-owned Indian Bank raised $400 million in overseas foreign currency borrowing from Commerzbank AG of Singapore and CTBC Bank of Taiwan, a senior bank official said.

With this overseas borrowing, the Chennai-headquartered bank joined the list of local lenders raising funds abroad.

This is part of the bank's plan to raise $1 billion from the overseas markets by the end of 2026 using the special regulatory window to boost dollar inflows. It is likely to mobilise the remaining $600 million of the target in the third quarter. The bank has also set a target of $2 billion through foreign currency non-resident bank (FCNR-B) deposits of which about $1.5 billion has already been mobilised.


The $400 million borrowing, done on Tuesday through its Gift City branch, carries a four year tenure, the bank said in a regulatory filing to the stock exchanges Wednesday.

Banks are fast-tracking their dollar bond and overseas fund-raising plans following the regulatory decision to advance the closure of the concessional swap window for foreign-currency non resident bank (FCNR-B) deposits, although the subsidised plans for institutional overseas borrowing or dollar bonds will continue to remain open until December 31, 2026, as announced earlier.

Axis Bank and ICICI Bank have raised more than $1 billion between them while Federal Bank, IDFC First Bank, Kotak Mahindra Bank and Yes Bank are on course to tap the overseas markets, people aware said.