Indian Bank to raise $1 b via overseas bonds

Indian Bank plans to raise $1 billion medium term notes (Rs 4,500 crore) to expand its overseas lending.

The bank expects to list this bond issue on the Singapore Stock Exchange.

Mr T.M. Bhasin, Chairman and Managing Director, told

Business Line that the bank would raise the funds via MTN in two or three tranches.

Total business of the bank reported a 20 per cent growth to Rs 1.8 lakh crore for the year ended March 31, 2011, with deposits of Rs 1.05 lakh crore and advances of Rs 75,726 crore. The bank's networth improved to Rs 8,327 crore (Rs 7,047 crore).

Branches in Sri Lanka

The bank plans to open three more branches in Sri Lanka at Trincomalee, Batticaloa and Hambantota, taking the number of branches in the country to five.

Indian Bank had opened a branch in war-ravaged Jaffna, three months ago.

Mr Bhasin said the bank's proposal to come out with a follow-on public offer to raise Rs 1,500 crore, by diluting 10 per cent stake in July this year “is on track”.