Indian Bank Raises ₹5,000 Crore via 10-Year Infra Bonds at 7.15% Coupon Rate

Indian Bank has raised ₹5,000 crore by issuing 10-year infrastructure bonds at a coupon rate of 7.15%.

The fundraising is part of the bank’s plan to support long-term infrastructure financing.

Strong Demand from Investors

The bond issue received good response from investors, with multiple bids at different coupon rates:

• ₹3,100 crore worth bids at 7.13%
• ₹4,100 crore and ₹5,050 crore bids at 7.14%–7.15%
• One additional bid of ₹5,075 crore

This shows strong investor interest in the offering.

Issue Structure and Details

The bank had planned to raise ₹5,000 crore, including a greenshoe option of ₹3,000 crore.

• Tenure: 10 years
• Coupon rate: 7.15%
• Allotment and payment date: March 24, 2026

High Credit Rating Adds Confidence

The bonds have been rated ‘AAA’ with a stable outlook by CRISIL and CARE Ratings.

A high credit rating indicates strong safety and low default risk, which helps attract investors.

About Indian Bank

Indian Bank is a government-owned bank in India, founded in 1907 and headquartered in Chennai. It has been under the ownership of the Government of India since 1969 and operates under the Department of Financial Services, which is part of the Ministry of Finance.

Read More: Centre Links Additional LPG Allocation to States Promoting Shift to Piped Gas.

Indian Bank Share Price Movement

Indian Bank share price (NSE: INDIANB) closed at ₹833.00, down ₹45.65 or 5.20% on March 23. The stock opened at ₹861.00 and touched an intraday high of ₹869.90 and a low of ₹833.00. The bank has a market capitalisation of around ₹1.12 lakh crore and is trading at a P/E ratio of 9.75. It offers a dividend yield of 1.95%, with a quarterly dividend of ₹4.06. Over the past year, the stock has hit a 52-week high of ₹1,000.00 and a low of ₹517.85.

Conclusion

Indian Bank’s ₹5,000 crore bond issue saw strong demand, reflecting investor confidence. Such fundraising will help the bank support infrastructure projects while maintaining stable funding sources.

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