IDBI looking for Rs 49000 crore overseas borrowings in second half of this fiscal

One of the large public sectors Bank, IDBI is looking to raise Rs 49000 crore from the overseas markets in the second half of the year to fund the demand from companies and customers for refinance and investments in new projects. These plans depend upon market conditions, which are unsettled now due to choppiness in the equity market.

The board has given approval for Foreign Currency borrowing limit up to principal outstanding amount of USD 7.5 billion equivalent including those borrowings under USD 5 billion medium term note programme.

Bank has already outstanding book of USD 3.5 billion and can raise up to USD 4 billion under the limit. The lender would review market conditions and decide about fund raising in the second half of the year that is at the beginning of October 2015. The funds would be raised in one or more tranches through bi-lateral loans, syndicated loans and lines of credit.

Out of existing book of the bank, securities and loans of about USD 350 million are coming for redemption. Plus there is some demand from corporate for new projects and refinancing.

Last month IDBI posted Q1FY16 result, where its total income increased by 7.8 per cent to Rs 7261 crore on yearly basis. The net profit of the bank stood at Rs 135 crore against Rs 106 crore in Q1FY15. A growth of 84 per cent in total premium of the company for first quarter at Rs 197 crore as compared to Rs 107 crore in the corresponding period of FY15.
Company's growth strategy combined with a strong execution infrastructure has also helped IDBI to maintain best in class, balanced opex ratio and improved revenue income.

Today IDBI bank shares are trading at Rs 55, down by 0.72 per cent.