SBI gets board nod to raise remaining Rs 5,000 cr in debt

Banking major SBI today said its board has approved raising the remaining Rs 5,000 crore of the Rs 12,000-crore fund raising programme through private placement of Basel-III compliant debt instruments.
Earlier in December, the bank had announced raising Rs 12,000 crore through issue of debt instruments in tranches.
SBI, on previous two occasions, had informed the exchanges that it raised Rs 4,000 crore and Rs 3,000 crore in two tranches through issue of debt instruments as part of the Rs 12,000 crore fund raising programme.
The lender in a filing to the BSE today said, "The Committee of Directors for Capital Raising met on March 9, 2016 to review the implementation of its resolution dated December 21, 2015 with regard to issue of debt instruments".

It authorised the Bank to "consider raising the residual amount (out of the overall approval obtained for raising the debt capital amount of Rs 12000 crores), either by way of issue of AT-I/Tier-ll instrument or any other debt instrument at appropriate time(s), by way of private placement, in such number of tranches, as may be considered appropriate," the filing said.
Earlier on February 19, the bank informed BSE that it raised Rs 3,000 crore from Basel-III compliant bonds to fund business growth.

On December 24, SBI had announced raising Rs 4,000 crore by issuing tier-II bonds on private placement basis under the Basel-III norms.

According to a Fitch Ratings report, Indian banks need USD 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.