ICICI Bank Board Approves $5 Billion Overseas Borrowing Limit; Shares Rise

ICICI Bank's board has approved a revised borrowing limit of up to $5 billion in overseas markets through bonds, notes and offshore certificates of deposit.

The approval was given at the board meeting on Friday, August 21, 2026, according to a regulatory filing. The lender can now tap international debt markets through different instruments within the revised limit, depending on its funding needs and market conditions.

ICICI Bank has already raised $1.7 billion under the Reserve Bank of India's concessional swap facility, through two tranches of $1 billion and $700 million.

Why Is ICICI Bank Increasing Its Overseas Borrowing Limit?

The move comes after the RBI introduced a concessional swap facility covering FCNR-B deposits, overseas foreign currency borrowings and external commercial borrowings.

For dollar-denominated bonds, the facility caps the hedging cost at 1.5%. Without the concession, the cost can be as high as 3.5%-4%, making overseas borrowing more expensive for Indian banks.

The lower hedging cost has opened up a more favourable route for lenders looking to raise dollar funding. ICICI Bank has already used the facility to raise $1.7 billion in two tranches.

The $5 billion approval is a limit rather than an immediate fundraising plan. It gives the bank room to return to the overseas market as and when it needs to raise funds.

ICICI Bank Shares Rise; Stock Up 6% In 2026

ICICI Bank shares were trading in positive territory on Friday. At 11:20 am, the stock was up 0.44% at Rs 1,417.70 apiece on the BSE. The stock has gained around 6% so far this year.

The borrowing approval follows a strong June quarter for the lender, with net profit and net interest income rising from a year earlier. Deposits and advances also recorded healthy growth during the period.

ICICI Bank Q1 Results: Net Profit Rises Nearly 16%

ICICI Bank posted a 15.95% year-on-year rise in standalone net profit to Rs 14,804.5 crore for the quarter ended June 2026.

Net interest income increased 12.7% year-on-year to Rs 24,384.35 crore. Net interest margin stood at 4.36%, compared with 4.32% in the March quarter and 4.34% in the corresponding period last year. The bank also reported an improvement in asset quality during the quarter.

Total period-end deposits stood at Rs 18,335.86 crore as of June 30, up 14% from a year earlier. Advances grew at a faster pace, rising 19.6% year-on-year to Rs 16,312.60 crore.

ICICI Bank's board approval comes a day after HDFC Bank announced a $1.75 billion dollar-denominated bond issue, the biggest such fundraise by an Indian bank.

The issue was raised through HDFC Bank's GIFT City branch and was split into two tranches: $500 million of three-year bonds and $1.25 billion of five-year bonds.

The three-year notes carry a 5.159% coupon, while the five-year bonds have a 5.401% coupon. Interest on both securities will be paid semi-annually, with settlement scheduled for August 26.

The three-year bonds are due to mature on August 26, 2029, while the five-year notes will mature on August 26, 2031.

In terms of pricing, the three-year tranche was issued at a spread of 88 basis points over US Treasuries. The five-year tranche came at a 100-basis-point spread.

With the revised limit, ICICI Bank has more headroom to raise foreign currency funds from overseas markets, adding another avenue to its funding mix as it expands its balance sheet.

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