Indian Bank plans to raise $400 mn via ECB this week: MD Binod Kumar

Indian Bank, founded in 1907, marked its 120th Foundation Day on August 15.
| Photo Credit:
AMAN RAJ

Indian Bank intends to tap the RBI’s concessional swap facility by raising $400 million via External Commercial Borrowings (ECB) this week to fund its expansion.

The state‑owned bank could also secure an additional $600 million through ECB before the RBI’s December 31 2026 cutoff.

“We are looking to raise $400 million through ECB as soon as this week, and the borrowing cost is expected to be highly competitive,” said Binod Kumar, MD & CEO of Indian Bank, in a conversation with PTI.

He added that after August the bank may pursue another $600 million, given that the RBI facility remains open through year‑end.

In total, the bank aims to mobilise roughly $1 billion through ECB and around $2 billion via Foreign Currency Non‑Resident (Bank) [FCNR(B)] deposits, he noted.

“We have already secured $1.5 billion from FCNR(B) deposits, and demand from NRIs remains strong because the product offers attractive yields; we expect the total to reach $2 billion,” Kumar said. He added that the robust inflow prompted the RBI to close the concessional swap window earlier than the planned September 30 2026 date.

On Friday the RBI announced an early closure of the FCNR(B) deposit window under its special USD‑INR forex swap facility, pointing to the enthusiastic response and sizable foreign‑exchange inflows the scheme has attracted.

According to RBI figures, FCNR(B) deposits have drawn $52.3 billion from overseas investors, OFCBs have added $2.81 billion and ECBs have contributed $1.74 billion as of August 13.

The RBI launched the special USD‑INR forex swap facility on June 8, applying it to FCNR(B) deposits until September 30 and to ECBs and OFCBs until December 31.

Founded in 1907, Indian Bank observed its 120th Foundation Day on August 15. On that day Kumar virtually opened 15 new branches nationwide, underscoring the bank’s pledge to bring accessible, customer‑focused banking services to communities throughout India.

As part of its digital push, the bank rolled out several customer‑centric products and introduced a cybersecurity mascot named ‘IB CYBER CAPTAIN’ to raise awareness among users and the public.

Additionally, the bank launched digital initiatives such as voice banking, offered in three languages through its registered mobile service.

The event was attended by Executive Directors Ashutosh Choudhury, Shiv Bajrang Singh and Mini T M, together with other senior officials.

“While marking our Foundation Day together with India’s 80th Independence Day, we renew our pledge to deepen financial inclusion, empower communities and support the nation’s path toward a stronger, more inclusive and prosperous Viksit Bharat,” he said.

As India advances on its development agenda, Indian Bank reaffirms its commitment to contribute to building a stronger, more prosperous nation, he added.

Published on August 16, 2026