Indian Bank Approves Additional ₹50 Billion Infrastructure Bond Issuance

Indian Bank has received approval to raise an additional ₹50 billion through infrastructure bonds. This move aligns with the bank's strategy to secure long-term funding amid slow deposit growth. Infrastructure bonds offer banks a cost-effective alternative to traditional deposits, as they are exempt from cash reserve ratio (CRR) and statutory liquidity ratio (SLR) requirements. Indian Bank had previously raised ₹50 billion in infrastructure bonds in October 2024, and this additional issuance will further support its infrastructure lending activities. The bank's cautious approach to raising expensive deposits highlights its focus on cost efficiency.

Source: Business Standard, Moneycontrol, CNBC TV18