Indian Bank has raised Rs 5,000 crore through long-term infrastructure bonds to support credit growth and infrastructure development. Issued on a private placement basis, the bonds garnered strong interest from investors, receiving 88 bids totalling Rs 13,680 crore—2.74 times the original offer size. The bonds were accepted at a 7.24 per cent coupon rate per annum and have a maturity of 10 years.
With a base issue of Rs 2,000 crore and a greenshoe option of Rs 3,000 crore, the bond issuance is part of Indian Bank’s strategy to bolster its resources while benefitting from exemptions in the Statutory Liquidity Ratio (SLR) and Cash Reserve Ratio (CRR) requirements. These exemptions offer the bank greater flexibility in managing its capital, enabling it to focus on infrastructure refinancing and the growing demand for credit in India.
Rated AAA with a stable outlook by both Credit Rating Information Services of India Limited (CRISIL) and Credit Analysis and Research Limited (CARE), the bonds reflect Indian Bank’s solid financial standing and its commitment to support India’s infrastructure needs. The bank’s proactive approach in securing funds underscores its dedication to play a pivotal role in the nation’s economic growth and meeting the rising demand for long-term financing in critical sectors. This move is aligned with the broader financial market trends, which emphasise on infrastructure development as a key driver of India’s future prosperity.
