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IndusInd Bank Shifts ₹10,000 Crore Loans to ICICI, Federal Bank Under IBPC.

Banking & Finance | Dated: 02 Apr 2025

In March 2025, Mumbai (Maharashtra)-based IndusInd Bank Limited recently transferred corporate loans worth over ₹10,000 crore to ICICI Bank Limited (Mumbai-based) and Federal Bank Limited (Kochi, Kerala-based) through Inter-Bank Participation Certificates (IBPC) to bolster liquidity amid concerns over potential deposit outflows linked to an ongoing accounting probe.

🎯 Key Highlights:

  • - The IBPC is a money market instrument used by banks to share loans and meet year-end lending targets.
  • - In these transactions, the selling bank receives 40% of the loan amount, which helps in managing liquidity and retiring deposits.

💡 Other Important Facts:

  • (i) Loans were transferred via the IBPC market, a short-term instrument (typically 6 months) allowing banks to borrow/lend against loan collateral.
  • (ii) Acquired loans carry an interest rate of 7.5-8%.
  • (iii) IndusInd Bank aims to secure liquidity to offset risks from a ₹2,000 crore net worth erosion linked to accounting irregularities.

📚 Test Your Knowledge:

Which bank recently transferred ₹10,000 crore loans to ICICI Bank and Federal Bank under IBPC?

Correct Answer: IndusInd Bank

🚀 Quick Recap: