SBI to raise Rs 2,000 crore by issuing Basel

SBI to raise Rs 2,000 crore by issuing Basel-III bonds

India’s largest lender State Bank of India plans to raise Rs 2,000 crore by allotting Basel-III compliant bonds to various investors.

“The committee of directors for capital raising accorded its approval today to allot 20,000 AT1 Basel-III compliant non-convertible, perpetual, subordinated bonds in the nature of debentures… aggregating Rs 2,000 crore to various investors,” State Bank of India (SBI) said in a regulatory filing today.

SBI said the bonds will carry a coupon rate of 8.15 per cent per annum with a call option after 5 years or the anniversary date thereafter. Shares of SBI were trading 1.67 per cent lower at Rs 302.50 on the BSE.