SBI raises Rs 6,000 cr by issuing bonds

The PSU lender said it has raised Rs 6,000 crore by issuing Basel III compliant bonds.

State Bank of India (SBI) has allotted 6,000 Basel lll compliant non-convertible, taxable, perpetual, subordinated, unsecured, fully paid-up debt instruments in the nature of debentures qualifying as AT 1 capital of the bank of face value of Rs 1 crore each, at par, bearing a coupon of 7.72% p.a. payable annually, aggregating to Rs 6,000 crore to bond subscribers on 18 October 2021.

In June, the bank had received approval from its central board for raising fresh AT 1 capital of up to Rs 14,000 crore.

Meanwhile, the Reserve Bank of India (RBI) on Monday imposed a monetary penalty of Rs 1 crore on SBI for non-compliance with the directions contained in 'Reserve Bank of India (Frauds classification and reporting by commercial banks and select FIs) directions 2016'.

SBI's standalone net profit rose by 55.3% to Rs 6,504 crore in Q1 FY22 from Rs 4,189.34 crore in Q1 FY21. Total income during the quarter rose by 3.9% YoY to Rs 77,367.17 crore.

SBI is an Indian multinational, public sector banking and financial services statutory body. As of 30 June 2021, the Government of India held 57.62% stake in the bank.

Shares of SBI were down 1.41% to Rs 490.85. The stock hit a record high of Rs 504.10 in morning trade today.

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