IndusInd Bank raises INR 20 bln via three CD issuances Wednesday
This story was originally published at 17:57 IST on 19 March 2025
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MUMBAI – IndusInd Bank raised a total of INR 20 billion through three issuances of certificates of deposit on Wednesday, data on Clearing Corp. of India's F-TRAC platform showed. All the three CDs of varied tenures were issued at 7.90%, 20-22 basis points higher than the current market levels for papers of similar maturity.
Market participants said the private lender likely borrowed the amount to meet year-end credit disbursal needs. The bank raised INR 10.00 billion through a paper maturing in November, and raised INR 5.00 billion each from CDs maturing in August and November.
Including the sum raised Wednesday, the bank has raised INR 148.50 billion through CDs so far in March, exceeding the amount of its CDs due for maturity this month. The CDs due for redemption this month are INR 30 billion.
"It (IndusInd Bank) is not a small bank and has a large ALM (asset/liability management) book so a 2% impact on net worth can easily be absorbed. Therefore, it managed to secure good rates despite some caution in the market," a fund manager at a mutual fund said.
IndusInd bank has been in the headlines since last week after it reported discrepancies in its derivatives portfolio that could have an adverse impact of around 2.35% on the bank's net worth as of December end, or about INR 15 billion. On Wednesday, shares of the bank ended 1.7% higher at INR 692.70 on the National Stock Exchange. End
Reported by Vidhushi Rajpurohit
Edited by Ashish Shirke
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