Indian Bank to Raise Rs 12,000 Crore for Growth and Infrastructure

State-owned Indian Bank has received approval from its board to raise Rs 12,000 crore. In a stock exchange filing on Wednesday, the bank announced that it plans to gather this capital through various methods.

The board has approved raising up to Rs 5,000 crore in equity capital. This can be done through different ways like Qualified Institutional Placement (QIP), Follow-on Public Offer (FPO), Rights Issue, or a mix of these methods. This plan will move forward after getting the necessary approvals from the Union government, the Reserve Bank of India (RBI), and other regulatory bodies.

Additionally, Indian Bank has been approved to raise up to Rs 2,000 crore by issuing Basel III Compliant AT 1 perpetual bonds and Tier 2 bonds. These bonds will be issued in one or more tranches during the current or next financial year, depending on the bank’s needs.

The board also gave the green light to raise up to Rs 5,000 crore through long-term infrastructure bonds. These bonds will be issued in one or more tranches during the current or next financial year. The funds from these bonds will be used for financing or refinancing infrastructure projects and affordable housing.

This move is part of Indian Bank’s strategy to strengthen its financial base and support growth in key areas. The raised funds will help the bank meet regulatory requirements and support its future expansion plans.

Overall, Indian Bank’s decision to raise Rs 12,000 crore will boost its financial strength and enable it to support important infrastructure and housing projects across the country.