Indian Bank plans to raise up to $1 billion through external commercial borrowings and foreign-currency non-resident deposits, leveraging RBI’s concessional swap window amid digital initiatives and expansion.
Indian Bank plans to raise $400 million through external commercial borrowings this week, according to Managing Director and Chief Executive Binod Kumar, as the state-owned lender looks to take advantage of the Reserve Bank of India’s concessional swap window to fund growth.
Kumar told PTI that the bank is considering the overseas borrowing at a competitive rate and may seek a further $600 million through ECBs before the central bank’s deadline of 31 December 2026. Together with planned foreign-currency non-resident bank deposits, Indian Bank is targeting about $1 billion from ECBs and roughly $2 billion from FCNR(B) deposits.
The Reserve Bank of India closed its special dollar-rupee swap facility for FCNR(B) deposits early last week after stronger-than-expected inflows, a sign that demand from overseas Indians has been robust. RBI data showed that FCNR(B) deposits had brought in $52.3 billion as of 13 August, while overseas foreign currency borrowings contributed $2.81 billion and ECBs $1.74 billion.
Indian Bank, which began operations in 1907, marked its 120th foundation day on 15 August by opening 15 branches across the country and unveiling a series of digital initiatives. These included a cybersecurity mascot called “IB CYBER CAPTAIN” and voice banking in three languages, as the lender pushed ahead with efforts to broaden access and deepen customer engagement.
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