Indian Bank Announces Record Date for Tier2 Bonds Series III Interest Payment

Indian Bank has announced the record date for annual interest payment on its outstanding Tier2 Bonds Series III, in compliance with SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The bank communicated this information to both NSE and BSE through an official notification dated December 22, 2025.

Bond Details and Interest Payment Schedule

The Tier2 Bonds Series III carry specific parameters for the upcoming interest payment cycle:

Parameter:	Details
ISIN Code:	INE428A08051
Issue Amount:	₹1,000.00 crores
Interest Rate:	8.15%
Payment Frequency:	Annual
Record Date:	January 12, 2026
Due Date:	January 27, 2026

Payment Date Adjustment

The original due date for interest payment was January 25, 2026. However, due to this date falling on a Sunday (holiday) and January 26, 2026 being a public holiday, the interest payment will be made on the succeeding working day, January 27, 2026. Importantly, no additional interest will be charged for this delay, as per the terms outlined in the offer document.

Record Date Determination

According to the relevant offer document provisions, when the date falling 15 calendar days prior to the interest payment day is a non-business day, the succeeding business day is considered as the record date. This regulatory framework ensures proper settlement procedures while accommodating holiday schedules.

Regulatory Compliance

The announcement fulfills the bank's disclosure obligations under SEBI regulations. Indian Bank has provided this information to both major stock exchanges where it is listed - NSE (Symbol: INDIANB) and BSE (Scrip Code: 532814) - ensuring transparent communication with bondholders and the investment community.

This interest payment represents the bank's commitment to servicing its debt obligations on schedule, maintaining investor confidence in its Tier2 capital instruments.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
+0.59%	+0.04%	+6.91%	+30.44%	+64.12%	+856.26%

Indian Bank has received the requisite prior approval from the Reserve Bank of India to exercise the call option on its outstanding Tier 2 Bonds Series V, completing a crucial regulatory milestone for the public sector bank. The approval enables the bank to proceed with the call option exercise on bonds aggregating to ₹2000.00 crores, scheduled for January 13, 2026.

RBI Approval and Regulatory Compliance

The bank announced the receipt of RBI approval through its official communication dated December 29, 2025, in continuation to its earlier letter dated December 18, 2025. This approval fulfills the regulatory requirement that was previously mentioned as a condition for the call option exercise. The approval demonstrates the bank's adherence to Basel III compliance framework and regulatory oversight requirements.

Bond Details and Timeline

The call option exercise involves the bank's Basel III compliant Tier 2 Bonds Series V, which were originally issued in January 2021. The following table outlines the comprehensive details of the bond series:

Parameter:	Details
ISIN Code:	INE562A08081
Bond Description:	6.18% Indian Bank Basel III Compliant Tier 2 Bonds Series V
Issue/Allotment Date:	January 13, 2021
First Call Option Date:	January 13, 2026
Record Date:	December 29, 2025
Bond Value:	₹2000.00 crores
Coupon Rate:	6.18%

Corporate Action Implementation

With the RBI approval now secured, Indian Bank can proceed with the call option exercise as scheduled. The record date of December 29, 2025, has been established to determine eligible bondholders for the call option exercise. This date serves as the cut-off for identifying bondholders who will be affected by the corporate action.

Capital Structure Management

The Tier 2 Bonds Series V represent a significant component of the bank's supplementary capital under Basel III guidelines. The successful completion of this call option exercise will allow Indian Bank to optimize its capital structure and manage its regulatory capital requirements effectively. The bonds carry a coupon rate of 6.18%, reflecting the interest rate environment at the time of their original issuance.

The bank has maintained transparency throughout this process by providing regular updates to stock exchanges in compliance with SEBI LODR Regulations, 2015, ensuring proper disclosure to all stakeholders and market participants.