Indian Bank to raise $1 bn through overseas bonds

State-owned Indian Bank plans to raise $1 billion (about Rs 4,500 crore) through overseas bonds to fund business growth, a top bank official said today.

"The bank's board has approved $1 billion Medium Term Note programmed to raise funds from overseas market during the current fiscal," Indian Bank Chairman T M Bhasin said after announcing 2010-11 financial results.

"With the Board approving the MTN, we will be able to complete the process in the next three months," he said.

Besides, the bank is also planning to raise capital through follow on public offer (FPO).

"We were waiting for the results to be announced. Having announced our results today, it (FPO) will move at a fast pace," he said.

The bank reported 7 per cent increase in net profit at Rs 438.86 crore for the fourth quarter ended March 31, 2011.

Total income of the bank grew by 23.65 per cent to Rs 2,865.8 crore in the January-March quarter from Rs 2,317.73 crore in the same quarter a year-ago.

For the whole 2010-11 fiscal, the bank's net profit rose by 10.23 per cent to Rs 1,714.07 crore compared to Rs 1,554.98 crore in the previous year.

During the year, total income expanded by 16.74 per cent to Rs 10,542.91 crore against Rs 9,030.77 crore in 2009-10.

On future plans, Bhasin said, "We are proposing to open three more branches in Trincomalee, Batticaloa, Hambantota in Sri Lanka this year."

The bank has been holding discussions with the regulators for getting approval in expanding presence in Sri Lanka. Indian Bank has two branches, one each in Jaffna and Colombo.