Indian Bank to raise Rs 500 cr from bonds post Sep

State-owned Indian Bank plans to raise Rs 500 crore through bonds after September to meet its current financial year's credit growth target.

"We have just raised Rs 500 crore and another Rs 500 crore would be raised from bonds during the second half of the current fiscal to meet the credit growth target," said Indian Bank Chairman and Managing Director T M Bhasin.

The fund raised would help the Chennai-based bank meet its credit growth target of 22 per cent for the current fiscal.

Earlier this month, the bank raised Rs 500 crore by issuing unsecured redeemable non-convertible subordinated lower tier II bonds on private placement basis.

For 2009-10, Indian Bank reported a 24.87 per cent rise in net profit to Rs 1,544.99 crore against Rs 1,245.32 crore in the previous year.

Last year, the bank's total business crossed Rs 1,50,000 crore with total deposits increasing by 21.56 per cent to Rs 88,228 crore and gross advances surging by 20.89 per cent to Rs 62,658 crore.

The bank is expecting its total business to touch Rs 1.85 lakh crore by the end of March 2011.

The bank, which already marks its presence in Colombo and Singapore, is also planning to expand its global footprint. At the same time, the bank will open about 190 branches across the country.