Indian Bank raises $400 million with four-year tenure

State-owned Indian Bank raises $400 million in four-year foreign currency funds through its GIFT City branch as Indian lenders rush to tap global markets.

Written by FE Bureau

August 19, 2026 19:34 IST

Indian Bank raises $400 million with four-year tenure

State-owned Indian Bank on Wednesday raised $400 million through its GIFT City branch, joining a growing list of public and private sector lenders tapping overseas markets for funds.

“Our GIFT City Branch has raised long-term USD funds amounting to USD 400 million,” the bank said in an exchange filing. The loan has a tenor of four years.

Banks have been accelerating their dollar bond and overseas fundraising plans after the Reserve Bank of India advanced the closure of its concessional swap window for foreign currency non-resident bank (FCNR-B) deposits. The swap facility, announced on June 8 to encourage stable dollar inflows, was initially scheduled to remain available until the end of September. However, the RBI last week brought forward its closure to August 31, citing the “encouraging response” to the facility and the “resultant forex inflows”.

The external commercial borrowing (ECB) and overseas foreign currency borrowing (OFCB) routes, however, will remain open until December 31.

Indian Bank’s fundraising comes amid a flurry of overseas borrowing by Indian lenders. On Tuesday, Kotak Mahindra Bank raised $650 million through its maiden dollar bond issue. ICICI Bank also raised $750 million at a coupon of 5.42% through five-year bonds on Tuesday, marking its second overseas bond issue in less than a month after raising $1 billion in July. IDFC First Bank also raised $500 million through its maiden international bond issuance on Wednesday.

This article was first uploaded on August nineteen, twenty twenty-six, at thirty-four minutes past seven in the evening.