Indian Bank raises Rs. 5,000 Crores at a coupon of 7.12% p.a. through issuance of Bonds

Indian Bank, one of India’s leading public sector banks, raised Rs.5,000 Crores through the issuance of Long-Term Infrastructure Bonds. The Bank received a total of 90 bids amounting to Rs. 15,925 Crores against the total issue size of Rs.5,000 Crores (Base issue of Rs. 2,000 Crores and Greenshoe option to retain oversubscription up to Rs. 3,000 Crores). The Bank accepted bids for Rs. 5,000 Crores at a coupon of 7.12% p.a. The Bank said that the private placement of long-term infrastructure bonds received an overwhelming response at ~ 3.19 times of the total issue size.

This strategic move is part of Indian Bank's efforts to mobilize resources for credit growth and refinancing of infrastructure projects. The funds raised through these securities are exempted from regulatory requirement of maintaining Statutory Liquidity Ratio (SLR) and Cash Reserve Ratio (CRR).

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These bonds are Senior, Rated, Listed, Unsecured, Redeemable, Long Term Fully Paid-up Non-Convertible Bonds, having a fixed maturity of 10 years from the date of allotment. The allotment of these bonds took place today i.e., on 25th October 2024. The bonds are rated AAA with a Stable outlook by CRISIL and CARE.

 

About Indian Bank

Founded on 15th August 1907, Indian Bank has 5846 domestic branches (including 3 DBUs), out of which 1983 are Rural, 1531 are Semi-Urban, 1173 are Urban & 1159 are in Metro category. The Bank has 3 overseas branches & 1 IBU.

The Bank has 5093 ATMs & BNAs and 11945 numbers of BCs.

Digital Banking

Business of ?36,678 Cr has been generated through Digital Channels in Q1FY25. A total of 84 Digital Journeys, Utilities and Processes have been launched so far.

·  The number of Mobile Banking users has grown by 33% year over year, reaching 1.75 Cr.

·  UPI users and Net Banking Users have seen a 30% & 26% YoY increase respectively, reaching 1.85 Cr and 1.09 Cr respectively.

·   The credit card users increased by 40% YoY to 2.38 lakh, while the total number of Point of Sale (PoS) terminals has increased by 66% YoY, reaching a total of 21,656.

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