Indian Bank's board of directors approved on Thursday a proposal to raise an additional long-term infrastructure bond up to Rs 5,000 crore in one or more tranches during the current or next financial year.
The funds are in addition to the Rs 10,000 crore already raised by the public sector bank in the current fiscal, according to an exchange filing.
Indian Bank reported a 35% rise in net profit to Rs 2,852 crore for the third quarter of the current fiscal, driven by core income growth. The bank's total income rose to Rs 17,912 crore for the quarter under review from Rs 16,099 crore in the previous year.
Shares of Indian Bank closed 1.71% higher at Rs 534.25 apiece on the National Stock Exchange before the announcement, compared to a 1.24% advance in the benchmark Nifty. The stock has risen 13.74% in the last 12 months and 0.81% on a year-to-date basis.
Ten out of the 11 analysts tracking the company have a 'buy' rating on the stock and one recommends 'hold', according to Bloomberg data. The average of 12-month analysts' price targets implies a potential upside of 25.5%.
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