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ICICI Bank has doubled its approved overseas borrowing limit to USD 5 billion, allowing it to raise funds through bonds, notes and offshore Certificates of Deposit. The revised limit comes as Indian banks increase overseas fundraising and take advantage of international debt markets. The bank had previously set the borrowing ceiling at USD 2.5 billion. ICICI Bank has also been active in the dollar debt market, raising USD 2.05 billion over the past month. Its strong first-quarter financial performance, including higher profits, loan growth and deposits, provides the backdrop to its increased funding capacity.
ICICI Bank has increased its overseas borrowing limit to USD 5 billion as it looks to raise funds from international markets for business growth. The board approved the revised limit at its meeting this week, according to a regulatory filing.
Under the revised approval, the bank can raise funds through bonds, notes and offshore Certificates of Deposit in overseas markets. The new limit is twice the USD 2.5 billion ceiling approved by the board in July.
The increase comes at a time when Indian banks are stepping up overseas fundraising. ICICI Bank has already raised USD 2.05 billion through dollar-denominated debt over the past month, making it one of the most active Indian banks in the offshore debt market. The fundraising included a USD 1 billion issue in July, a USD 300 million issue earlier this month and a USD 750 million five-year dollar bond issued this week.
The USD 750 million bond was priced at a spread of 105 basis points over five-year US Treasury yields and carried a coupon of 5.417%. The issue received bids exceeding USD 2 billion, indicating strong demand from investors.
ICICI Bank's increased borrowing capacity also comes as Indian lenders accelerate overseas fundraising following the Reserve Bank of India's decision to close its foreign exchange swap facility earlier than initially planned. The facility is scheduled to close at the end of August, prompting several banks to bring forward dollar bond and loan plans. Indian banks had raised about USD 5.93 billion through overseas borrowings during 2026 as of last week, with further fundraising expected before the year-end.
The bank's financial performance has also remained strong. For the quarter ended June 2026, ICICI Bank reported a 15.9% year-on-year increase in consolidated profit after tax to INR 15,440 crore, compared with INR 13,558 crore in the corresponding quarter a year earlier.
On a standalone basis, profit after tax increased 15.9% to INR 14,805 crore from INR 12,768 crore. Net interest income rose 12.7% year-on-year to INR 24,384 crore, while core operating profit increased 15.6% to INR 20,235 crore.
The bank's loan portfolio grew 19.6% year-on-year to INR 16,31,260 crore by the end of the quarter. Deposits increased 14% to INR 18,33,586 crore. The retail loan portfolio grew 12%, while business banking and rural portfolios recorded higher growth of 28.2% and 35.4%, respectively.
ICICI Bank also maintained a strong capital position, with its total capital adequacy ratio at 16.84% and its CET-1 ratio at 16.19% at the end of the quarter. Its net non-performing asset ratio stood at 0.35%.
The larger overseas borrowing limit gives ICICI Bank additional room to access foreign currency funding as its loan book and overall business continue to expand. The approval itself does not mean the entire USD 5 billion will be raised immediately, but provides the bank with a higher ceiling for accessing international markets when funding conditions are favourable.
Source PTI
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