SBI will raise up to ₹11,000 crore in FY23 | Rare Techy


MUMBAI : India’s largest lender State Bank of India (SBI) said on Wednesday that its board has approved the hike. 11,000 crores in loans in the current financial year.

“The central board of the bank in its meeting today approved to raise capital through issuance of Basel III compliant debt instrument denominated in dollar/rupee and/or other convertible currencies, during FY23…” regulatory filing.

When the plan is to raise additional tier 1 (AT-1) capital 7,000 crore, remaining as per the Indian government’s agreement 4,000 crore will be in the form of new tier 2 capital.

At the end of March, SBI’s total capital ratio was 13.83%, with tier 2 at 2.41% and AT-1 at 1.48%.

Mint reported on Wednesday that public sector banks have increased the total 4,000 kroner this financial year through AT-1 bonds, and it is expected that they will raise much more, as they aim to finance the growth of credit and the loans that are replacing them this year. When Punjab National Bank was the first to hit the market, it raised Canara Bank also raised Rs 2,000 crore in AT-1 bonds at 8.75% this month. 2,000 crore, but with a lower interest rate of 8.24%.

AT-1 bonds, also called perpetual bonds, have no maturity date, but have a call option at the end of five years. These are issued by banks to increase their core base, thereby complying with Basel III norms.

Get all Industry News, Banking News and Updates on Live Mint. Download Mint News App to get Daily Market Updates.

More Less


Source link

Related Articles

Back to top button