Managing Director and CEO Binod Kumar said the proposed fundraising would use the external commercial borrowing, or ECB, route. This involves borrowing in foreign currency from overseas lenders. The bank wants competitively priced funding to support business expansion and lending.

The plan uses an RBI swap facility that helps banks convert foreign currency into rupees at a fixed rate, limiting exposure to exchange-rate movements. The ECB window remains available until December 31, 2026, although support for certain foreign-currency deposits ended earlier. If both proposed borrowings go ahead, Indian Bank would raise $1 billion through this route.

The lender has also collected $1.5 billion through FCNR(B) deposits and expects that amount to reach $2 billion soon. These accounts allow non-resident Indians to hold deposits in foreign currencies. The report attributes the early withdrawal of RBI support for these deposits to strong inflows and ample foreign exchange.

Alongside the funding plans, Indian Bank marked its 120th Foundation Day on August 15, with Kumar inaugurating 15 branches. It also rolled out voice-based banking in three languages and introduced IB CYBER CAPTAIN, a mascot intended to build awareness about online safety.