SBI likely to raise Rs 1,000 crore through bonds

MUMBAI: India's largest lender State Bank of India (SBI) is mulling to raise Rs 1,000 crore through issue of bonds in the domestic market this week to meet various requirements.

"We have a proposal to raise Rs 10 billion (Rs 1,000 crore) through perpetual bonds for our various requirements," a senior bank official told on condition of anonymity.

There has been a round of discussion on the proposal and the bank is likely to issue perpetual bonds this week, he added.

SBI had announced earlier that it will require about Rs 15,000 capital during this financial year. Out of this, it has already raised Rs 2,600 crore upper tier II from the domestic market and USD 225 million tier I capital from overseas.

The funds are to be deployed against operational risk requirement under the Basel II norms, the global standard for increased risk provisioning, adopting new accounting standards, asset growth of the bank, possible new ventures and other corporate purposes.