Indian Bank raises Rs 5,000 crore

CHENNAI: Public sector Indian Bank has raised Rs 5,000 crore through the issuance of long-term infrastructure bonds. The move is part of the bank's efforts to mobilise resources for credit growth and refinancing of infrastructure projects.

A total of 90 bids amounting to Rs 15,925 crore against the total issue size of Rs 5,000 crore (base issue of Rs 2,000 crore and greenshoe option to retain oversubscription up to Rs 3,000 crore) were received, the bank said in a statement.

Bids for Rs 5,000 crore at a coupon of 7.1% per annum were accepted.

The funds raised through these securities are exempted from regulatory requirement of maintaining Statutory Liquidity Ratio (SLR) and Cash Reserve Ratio (CRR).

These bonds have a fixed maturity of 10 years from the date of allotment. The allotment of these bonds took place on Friday, the statement further said.


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