Indian Bank needs $500M for Lanka, Singapore and HK operations

Indian Bank will raise a loan of up to $500 million for its overseas operations.

This was annoinced by the bank's chairman and managing director T.M. Bhasin, according to Yahoo News.

'The bank board has approved raising up to $1 billion medium term loan. We have conducted the road shows. We will be raising anything between $350-$500 million in the first tranche,' Bhasin said.

Bhasin explained said that the loan funds will be used for funding their overseas branches in Sri Lanka and Singapore. The bank's there will go up to Rs.2,250 crore.'

Executive director Rajeev Rishi said the bank plans to have a branch in Hong Kong and three more branches in Sri Lanka.

'We will have around six branches in Sri Lanka. India's assistance for the rehabilitation of Sri Lankan Tamils will be routed through our bank,' he said.

Rishi said the bank is chalking out a new strategy for its merchant banking subsidiary while winding up its housing finance and mutual fund subsidiaries.