2 weeks ago
Indian Bank to raise $400 million via ECB this week
Indian Bank wants to borrow money from lenders in other countries.
It plans to borrow $400 million this week because the central bank made it cheaper to do so.
The bank might borrow another $600 million later in the year.
In total, it hopes to borrow about $1 billion this way.
The bank is also getting money from Indian people living abroad, who deposit their savings in a special account.
These deposits earn attractive returns, and Indian Bank has already received $1.5 billion from them.
The Reserve Bank of India stopped one of its special programs early because banks were already getting a lot of money through it.
Indian Bank also just celebrated its 120th birthday by opening 15 new branches.
It launched new technology, including voice banking and a cybersecurity mascot to teach people about online safety.
Indian Bank plans to raise $400 million through External Commercial Borrowings (ECB) this week at a very competitive rate.
The public sector lender may raise another $600 million via ECB before the RBI's December 31, 2026 deadline.
Overall, the bank plans to garner $1 billion through ECBs and about $2 billion via FCNR(B) deposits, of which $1.5 billion has already been raised.
The RBI prematurely closed the FCNR(B) window under its special USD-INR forex swap facility due to encouraging response and strong forex inflows.
Indian Bank celebrated its 120th Foundation Day on August 15, inaugurating 15 branches and launching digital initiatives including voice banking and a cybersecurity mascot.
- Who
- Indian Bank, led by MD and CEO Binod Kumar, with the Reserve Bank of India setting the policy window.
- What
- Indian Bank plans to raise $400 million via External Commercial Borrowings this week to support business growth.
- Where
- India, through the RBI's special USD-INR forex swap facility.
- When
- This week, with an additional $600 million contemplated before the RBI's December 31, 2026 deadline.
- Why
- To support business growth by tapping competitive overseas fund-raising rates under the RBI's concessional swap window.
Key facts
- Immediate ECB raise
- $400 million planned this week
- Additional ECB raise planned
- $600 million before December 31, 2026 (total $1 billion)
- FCNR(B) deposits raised so far
- $1.5 billion, targeting $2 billion
- FCNR(B) attracted under RBI scheme
- $52.3 billion till August 13
- ECBs attracted under RBI scheme
- $1.74 billion till August 13
- OFCBs attracted under RBI scheme
- $2.81 billion till August 13
- RBI swap facility launch date
- June 8, with FCNR(B) window closed prematurely, ECB/OFCB window open till December 31
- Foundation Day
- 120th Foundation Day celebrated on August 15; 15 branches inaugurated
Quotes
Binod Kumar
MD and CEO of Indian Bank
“"As we celebrate our Foundation Day alongside the 80th Independence Day, we reaffirm our commitment to strengthening financial inclusion, empowering communities and contributing meaningfully to India's journey towards a stronger, more inclusive and prosperous future of Viksit Bharat."”
thehindubusinessline.com
“"The bank is considering raising $400 million via the ECB route as early as this week... the overseas fund raise would come at a very competitive rate."”
thehindubusinessline.com











