Bank of India to raise money through MTN as Europe situation improves

Public sector Bank of India (BoI) will raise foreign currency loan under its medium term note (MTN) programme as soon as the global economic situation improves, a top executive has said.

"We will enter the market for raising foreign currency loan as soon as the situation improves on the global economic front. However, there is no such plan as of now," a top bank official, who wished not to be named, told reporters.

The state-run lender, which had a MTN programme of raising around $5 billion in 2005, has raised $1.475 billion till now.

Referring to amount likely to be raised, the official said it was difficult to peg a specific quantity as it would depend on the prevailing economic situation.

"We may look at other currencies also, except dollar, to raise money through MTN programme."

Earlier, the State Bank of India (SBI) had said the country's largest lender would revive its international borrowing plans in next three to four months with the improvement of European situation.

SBI Managing Director Hemant Contractor has reportedly said the bank could raise above $500 million through its international borrowing plan.

Recently, another Government lender, Union Bank of India, filed an updated prospectus with the Singapore Stock Exchange for its $2 billion MTN programme, out of which the bank had already raised $565 million.

Last year, several banks deferred their plans of international borrowing due to risk aversion approach of European institutions towards emerging economies.