Indian Bank intends to raise $400 million through External Commercial Borrowings (ECB) as early as this week to support its business growth, utilizing the favorable currency swap mechanism of the Reserve Bank of India (RBI).
Furthermore, the public lender may raise an additional $600 million through ECB before the deadline set by the RBI—December 31, 2026.
Binod Kumar, Managing Director and CEO of Indian Bank, told PTI in an interview that the bank is considering raising $400 million through ECB this week, noting that the foreign fundraising will be done at a very competitive rate.
He added that after August, the bank will consider raising an additional $600 million, as the RBI window is available until the end of the current calendar year.
Overall, the bank plans to raise $1 billion through ECB and about $2 billion through Non-Resident Foreign Currency Deposits (FCNR(B)) or Foreign Currency Non-Resident Deposits (Bank).
Binod Kumar also mentioned that Indian Bank has already raised $1.5 billion through FCNR(B) deposits, highlighting strong demand from NRIs who are willing to place funds in this product due to attractive returns. He expressed hope that the volume of borrowings will reach $2 billion.
Kumar noted that the FCNR(B) inflows were higher than expected, which led to the premature closure of the RBI's favorable currency swap mechanism well before the planned date of September 30, 2026.
On Friday, the Reserve Bank closed the window for mobilizing FCNR(B) deposits under its special USD-INR currency swap scheme, citing the encouraging response and the strong inflow of foreign currency generated by this program.
According to RBI data, as of August 13, FCNR(B) attracted $52.3 billion from foreign clients, while OFCB (Overseas Foreign Currency Borrowings) brought in $2.81 billion, and ECB brought in $1.74 billion.
The RBI introduced a special USD-INR currency swap mechanism on June 8, setting the validity period for FCNR(B) deposits until September 30, and for ECB and OFCB until December 31.
Indian Bank, which started operations in 1907, celebrated its 120th Anniversary on August 15. On this occasion, Kumar virtually inaugurated 15 branches in different parts of the country, demonstrating the bank's commitment to providing accessible and customer-centric banking services closer to communities across India.
The bank also launched various customer-centric products as part of its digital transformation. To raise awareness among customers and the public about cybersecurity, the bank introduced its cybersecurity mascot, 'IB CYBER CAPTAIN'. Furthermore, the bank implemented various digital initiatives, including voice banking using a registered mobile service in three languages.
The ceremony was attended by executives Ashutosh Choudhury, Shiv Bajrang Singh, and Mini T M, along with senior officials.
During the celebration of the Anniversary Day and the 80th Independence Day, Kumar reaffirmed the commitment to strengthening financial inclusion, empowering communities, and contributing to India's journey towards a stronger, more inclusive, and prosperous future of Viksit Bharat.
He concluded that as India moves forward on its development path, Indian Bank remains committed to playing a significant role in building a stronger and more prosperous nation.
