On September 26, state-owned Indian Bank announced that its board has approved the raising of ₹5,000 crore through long-term infrastructure bonds to support various projects.
The board sanctioned the issuance of additional long-term infrastructure bonds totaling up to ₹5,000 crore, in addition to the ₹5,000 crore already raised by the bank in FY25, as stated in a regulatory filing.
This fundraising initiative will be executed in one or more tranches during the current or following financial year, depending on the need for financing or refinancing infrastructure and affordable housing projects, in compliance with relevant RBI guidelines and other applicable laws and regulations.
In recent months, Indian state-run banks have increasingly turned to infrastructure bonds for funding. For instance, Bank of Baroda raised ₹5,000 crore earlier this month at a coupon rate of 7.26 percent per annum through a 10-year infrastructure bond. Similarly, the State Bank of India (SBI) raised ₹10,000 crore in June through its fifth issuance of infrastructure bonds.
