Indian Bank is planning to list its bonds on the Singapore Stock Exchange next week. The bank has got its board's approval to raise $1 billion (around Rs 4,400 crore) through the issue of Medium Term Notes (MTN), which would help the bank to increase its exposure by around Rs 4,500 crore from its overseas branches.
Speaking to reporters after declaring the bank's first quarter results in Chennai on Sunday, T M Bhasin, chairman and managing director, Indian Bank, said it had conducted roadshows and got good response for the MTN. “However, we are looking for better pricing. Because of Greece bail-out and US debt plan there is some uncertainty, which is expected to be resolved by this week,” he said.
“We are planning to raise $350 million to $500 million as part of first tranche,” said Bhasin.
The fund-raising would help the bank's overseas branches including Singapore, Colombo and Jaffna to increase the business by another Rs 4,500 crore from the current Rs 8,000 crore.
“Both the loan book and investment would go by Rs 2,250 crore each respectively,” he said. Meanwhile, the bank has filed applications to open one branch in Hong Kong and three in Sri Lanka.
Indian Bank's net profit during the quarter ended June 30, 2011, rose to Rs 406.9 crore from Rs 368.2 crore in the same period last year, an increase of 10.5 per cent.
The bank's total business rose by 21.3 per cent to Rs 192,934 crore from Rs 159,027 crore. Its gross NPA was at Rs 860 crore as compared to Rs 988 crore during the first quarter of 2010.