SBI to raise up to Rs 12,000 crore by issuing tier-II bonds
SBI said the amount may be raised in a single or more tranches and the coupon rate on the bonds may be decided at the time to actual issuance.
Country's largest lender State Bank of India (SBI) on Monday said it plans to raise up to Rs 12,000 crore by issuing tier-II bonds on private placement basis.
The Committee of Directors' has authorised the bank to raise up to Rs 12,000 crore by way of "issue of Basel III compliant Tier-II bonds, at par, through private placement", SBI said in a filing to the BSE.
SBI said the amount may be raised in a single or more tranches and the coupon rate on the bonds may be decided at the time to actual issuance.
According to a Fitch Ratings report, Indian banks need $140 billion capital to ensure full compliance with the Basel III norms by 2018-19. The Basel III norms are aimed at bolstering banks' resilience.
Basel III capital regulations are being implemented in India with effect from April 1, 2013 in a phased manner.