IDBI Bank to Raise ₹10,000 Cr via Bonds

IDBI Bank's Board of Directors has given the green light for issuing long-term rupee denominated bonds, with a target of raising up to ₹10,000 crore. This strategic financial move aims to bolster funding for crucial infrastructure development and affordable housing initiatives.

The issuance is scheduled to take place in tranches, concluding by March 31, 2027, utilizing the private placement route within the domestic market. Notably, IDBI Bank did not engage in such long-term bond issuances during the fiscal year 2026.

This decision arrives as the broader banking sector continues to face a disparity between credit growth, which stood at 16 percent year-on-year as of March 2026, and deposit growth, which was 13.40 percent during the same period. This gap of 260 basis points underscores the need for alternative funding sources.

As of March 2026, IDBI Bank reported a 16 percent year-on-year increase in net advances, reaching ₹2,53,626 crore, while total deposits grew by 12 percent year-on-year to ₹3,47,163 crore. Banks are actively employing strategies such as tapping certificates of deposit, securing bulk deposits, and selling excess statutory liquidity ratio instruments to manage this deposit growth challenge.