Categories: Business

SBI to raise Rs 8,931 crore, Basel-3 bonds to be issued to investors with call-option

Photo: INDIAN EXPRESS

SBI to raise Rs 8,931 cr by issuing Basel III compliant bonds

new Delhi. The country's largest bank State Bank of India (SBI) on Friday said that its board of directors has approved a proposal to raise Rs 8,931 crore by issuing Basel-3 compliant bonds. The bank told the stock market that the directors of the capital raising committee approved the issuance of 89,310 non-convertible, taxable, redeemable, subordinate, unsecured and fully paid loan letters under Basel-3 in a meeting held today. Granted.

These bonds together will be worth Rs 8,931 crore. The bank said that the face value of these bonds will be Rs 10 lakh per bond and the maturity period will be 15 years. They will get 6.80 percent interest annually. The bank said that these bonds will come with call option and investors can sell these bonds anytime after 10 years.

A call option means that the bond issuer can withdraw the bond by paying the principal amount to the investors before the maturity period. Under the Basel-3 capital rule, banks need to improve and strengthen their capital planning process. The Basel-3 Rules are being implemented in a phased manner from 2013 by domestic banks. SBI shares closed at Rs 198.35, up 1.87 percent on the BSE.

This post was published on August 21, 2020 6:58 pm

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