Chennai, To cash in on the RBI's concessional swap window, Indian Bank plans to raise $400 million through External Commercial Borrowings (ECB) this week to support its business growth.
In addition, the public sector lender may mop up another $600 million via ECB before the Reserve Bank of India's deadline of December 31, 2026.
"The bank is considering raising $400 million via the ECB route as early as this week...the overseas fund raise would come at a very competitive rate," Indian Bank MD and CEO Binod Kumar told PTI in an interview.
Post August, he said, the bank would consider garnering another $600 million as the RBI window is available till the end of the calendar year.
Overall, the bank is planning to garner $1 billion from the ECB and about $2 billion via Foreign Currency Non-Resident (Bank) or FCNR (B) deposits, he said.
"Indian Bank has already raised $1.5 billion from FCNR(B) deposits...we have seen good demand from NRIs. They are willing to put their money in such a product as it provides attractive returns...we hope it would touch $2 billion," he said,
Better than expected FCNR(B) flows have been there, which is why the RBI halted the concessional swap facility much ahead of the scheduled deadline of September 30, 2026, he said.
On Friday, Reserve Bank prematurely closed the window for mobilising FCNR(B) deposits under its special USD-INR forex swap facility citing the encouraging response and strong forex inflows generated through the scheme.
As per the RBI data, FCNR(B) has attracted $52.3 billion from overseas customers, while Overseas Foreign Currency Borrowings (OFCBs) contributed $2.81 billion and ECBs $1.74 billion till August 13.
The RBI introduced the special USD-INR forex swap facility on June 8, covering FCNR(B) deposits with a deadline of September 30, while December 31 for ECBs and Overseas Foreign Currency Borrowings (OFCBs).
Indian Bank, which started its operation in 1907, celebrated its 120th Foundation Day on August 15. On the occasion, Kumar virtually inaugurated 15 branches across different parts of the country, reinforcing the bank's commitment to taking accessible and customer-centric banking services closer to communities across India.
The bank also launched various customer-centric products as part of its digital journey. To strengthen cybersecurity awareness among customers and the general public, the bank unveiled its cybersecurity mascot 'IB CYBER CAPTAIN'.
Besides, the bank also launched various digital initiatives, including voice banking with the help of registered mobile service in three languages.
The celebrations were attended by Executive Directors Ashutosh Choudhury, Shiv Bajrang Singh and Mini T M, along with senior officials.
"As we celebrate our Foundation Day alongside the 80th Independence Day, we reaffirm our commitment to strengthening financial inclusion, empowering communities and contributing meaningfully to India's journey towards a stronger, more inclusive and prosperous future of Viksit Bharat," he said.
As India moves forward on its development journey, Indian Bank remains committed to playing a meaningful role in building a stronger and more prosperous nation, he added.
