Ind Bank eyeing ECB, retail bonds sale routes to raise funds

Mumbai, Feb 18 (PTI) State-run lender, Indian Bank iscontemplating raising funds through external commercialborrowings (ECBs) or sale of retail bonds to meet itslong-term lending demands, a senior bank official said.

"Given the current situation where interest rates areincreasing coupled with high inflation, the savings depositswith banks are reducing. To meet our long-term lendingrequirements, we are looking at other sources for raisingfunds," the bank''s Executive Director, V RamaGopal, told PTIon the sidelines of an event organised by the Indian Banks''Association (IBA) here today.

The bank is looking at overseas borrowings as well assale of retail bonds for raising funds.

"Today, bank deposits are going down considerably onaccount of the changing spending habits of Indians. Sinceexpenditure is aggressive, saveable funds available with thebanks are limited. Hence, we are looking at the possibility ofraising funds through ECBs or selling retail bonds," he said.

He, however, did not give a time-frame for fund-raising.

"We will have to factor in pricing in case of overseasborrowings as it will have be passed on to our customers," hesaid.