Bank Has Become the Latest Bank to Tap the Dollar Debt Market Through Its Branch in GIFT City, As Domestic Lenders Rush to Raise Overseas

The bank's board approved the issuance of foreign-currency-denominated bonds through its International Financial Services Centre (IFSC) Banking Unit (IBU) in GIFT City on Friday. Federal Bank is aiming to raise $500 million through a five-year dollar bond sale, the bankers said. The move makes Federal Bank the latest in a series of Indian lenders seeking to raise funds in foreign currency via the GIFT City financial hub, reflecting a broader trend among domestic banks to access overseas capital markets. The bank has not yet disclosed further details on the bond issuance, including pricing or timing.