IDBI Bank’s Board of Directors on Saturday approved issuance of long-term rupee denominated bonds for financing of infrastructure and affordable housing of up to ₹10,000 crore.
The issuance, approved at the Board’s meeting, will be in tranche(s) up to March 31, 2027, through private placement route in the domestic market.
The private sector bank did not mobilise funds via long-term rupee denominated bond issuances in FY26.
The move to raise funds via long-term rupee denominated bonds in FY27 comes in the wake of banks’ deposit growth continuing to lag credit growth.
As at March-end 2026, the gap between credit growth (16 per cent year-on-year) and deposit growth (13.40 per cent) for the banking system was at 260 basis points.
As at March-end 2026, IDBI Bank’s net advances grew by 16 per cent year-on-year (y-o-y) at ₹2,53,626 crore, total deposits were up by 12 per cent y-o-y at ₹3,47,163 crore.
Banks are overcoming the challenge of the deposit growth front by tapping certificates of deposit, bulk deposits and sale of excess statutory liquidity ratio instruments.
Published on May 16, 2026