Indian Bank raises ₹5,000 crore via 10-year infrastructure bonds
Indian Bank just raised ₹5,000 crore by selling 10-year infrastructure bonds at a 7.15% interest rate.
Institutional investors, including EPFO, were in talks to participate, and the bond sale included a greenshoe option for extra demand.
Bonds rated AAA by CARE and CRISIL
The bonds got top AAA stable ratings from CARE and CRISIL, basically the gold standard for safety.
For Indian Bank, this is a smart move to handle slow deposit growth and rising costs of bulk deposits.
Infrastructure bonds are exempt from certain reserve requirements
These infrastructure bonds help the bank lend more affordably to big projects since they're exempt from certain reserve requirements (CRR and SLR).
This trend follows similar moves by other banks lately.
Banks have issued ₹25,000 crore in infrastructure bonds this fiscal
So far in FY26, banks have raised around ₹25,000 crore through infrastructure bonds—a big drop from the previous fiscal year (FY25) — ₹89,200 crore.
It shows how fundraising strategies are shifting across the sector.