State Bank of India (SBI) has raised Rs 5,000 crore by issuing Basel-III compliant bonds. The committee of directors of capital raising met on October 26, 2020 and accorded its approval to allot 50,000 Basel-III compliant non-convertible, taxable debt instruments.
The debentures qualifying as tier II capital of the bank of face value of Rs 10 lakh each, at par, bearing a coupon of 5.83 percent aggregating to Rs 5,000 crore were allotted to bond subscribers on October 26, 2020. The interest on the bonds will be paid annually for a tenor of 10 years and call option after 5 years and on anniversary date thereafter.
SBI is the country’s largest lender and it offers a wide range of services in the Personal Banking, Agriculture/ Rural, NRI services, SME and Corporate Banking etc.
