Indian Bank and National Bank for Financing Infrastructure and Development (NaBFID) plan to raise a combined ₹8000 crore ($864.10 million) from the corporate bond market by March, two bankers with knowledge of the matter said on Wednesday.
Indian Bank is set to raise ₹5,000 crore through seven- or 10-year infrastructure bonds, while NaBFID plans to raise about ₹3000 crore through 10-year notes, the bankers said.
“Both the entities are targeting to complete the fundraising as early as possible in the next week, and have already tied up with some investors,” one of the bankers said.
The bankers requested anonymity as they are not authorised to speak to the media. Indian Bank and NaBFID did not reply to a Reuters email seeking comment.
This would be the first time Indian Bank will tap the bond market in nearly 18 months. In October 2024, the lender had raised 50 billion rupees through 10-year infrastructure bonds at 7.12% coupon.
The issuance follows a pickup in infrastructure bond fundraising, with Union Bank of India set to raise ₹7,500 crore through 10-year bonds on Friday.
Earlier in the month, Bank of Baroda raised ₹10,000 crore through seven-year bonds at 7.10%, and the issue witnessed aggressive bids from large state-run provident fund house.
“Strong domestic liquidity and institutional demand mean that high-quality banks and PSU issuers still find access to funding, albeit at slightly higher coupons,” Harit Oberoi, head of fixed income at Motilal Oswal Wealth Management.
Meanwhile, NaBFID had raised around ₹2,500 crore through 10-year bonds at 7.45% coupon, followed by withdrawal of its first ever three-year bond issue, after bids came in higher than expected.
Published on March 18, 2026
