IDBI Bank’s Board of Directors has approved the issuance of long-term rupee-denominated bonds for infrastructure and affordable housing financing, with a total value of up to ₹10,000 crore. This decision, made during the Board meeting, will be executed in tranches until March 31, 2027, through the private placement route in the domestic market.
Notably, the private sector bank did not raise funds via long-term rupee-denominated bond issuances during the financial year 2026. The decision to seek funding through these bonds in FY27 comes as banks continue to face challenges with deposit growth lagging behind credit growth. As of March-end 2026, the credit growth for the banking system was 16 percent year-on-year, while deposit growth stood at 13.40 percent, creating a gap of 260 basis points.
Specifically for IDBI Bank, net advances increased by 16 percent year-on-year to reach ₹2,53,626 crore, while total deposits rose by 12 percent year-on-year to ₹3,47,163 crore by March 2026. To mitigate the challenges in deposit growth, banks are increasingly resorting to certificates of deposit, bulk deposits, and selling excess statutory liquidity ratio instruments.
The report was published on May 16, 2026.
