SBI to raise Rs 41.16 billion by issuing Basel III compliant bonds

The country’s largest lender State Bank of India

The country's largest lender SBI will raise Rs 41.16 billion by issuing Basel III compliant bonds to add up to its tier 2 capital, the bank said Friday.

The committee of the directors for capital raising has accorded approval to allot Basel III compliant debt instruments qualifying as tier 2 capital of the bank, SBI said in a regulatory filing.

According to the bond programme, the bank will issue 41,159 non-convertible, taxable, redeemable, subordinated, unsecured debt instruments in the nature of debentures of face value of Rs 1 million each, bearing coupon of 8.90 per cent per annum aggregating to Rs 41.15 billion, it said.

The interests are to be paid annually for a tenor of 10 years with call option after 5 years to various bond subscribers, SBI said.

Stock of SBI traded 0.61 per cent down at Rs 283.95 on BSE.

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

Business Standard is now on Telegram.
For insightful reports and views on business, markets, politics and other issues, subscribe to our official Telegram channel