The board of IDBI Bank will meet on Dec. 31 to consider and approve raising up to Rs 10,000 crore through the issuance of infrastructure bonds in the current financial year and 2025-26 (Apr-Mar), the lender informed exchanges.
This has come as banks have been on a spree to raise funds through infrastructure bonds because of slower deposit growth in the system.
Banks and financial institutions raise money through infrastructure bonds to finance long-term infrastructure projects. These bonds have a minimum maturity of seven years and are eligible for some regulatory exemptions, such as the mandatory requirements of the statutory liquidity ratio and the cash reserve ratio. Affordable housing loans can also be used to finance infrastructure bonds.
For the quarter ended September, the bank's profit after tax was up 39% on year to Rs 1,836 crore. Net interest income of the bank was Rs 3,875 crore, up by 26% on year.
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