SBT to raise up to Rs 600 cr via Basel-III bonds

Being implemented in phases since April 1, 2013, Basel-III norms are likely to be fully in place in India by March 2019

Public sector lender State Bank of Travancore (SBT) today said it will raise up to Rs 600 crore through issuance of Basel-III-compliant additional tier-I bonds on private placement basis.

"The Executive Committee of the Board of Directors of the Bank in its meeting held on December 7, 2016, has approved raising of up to Rs 600 crore by way of issue of Basel III compliant additional tier I bonds by private placement," State Bank of Travancore said in a BSE filing.

In view of implementation of global standard Basel III Capital Regulations, banks need to improve and strengthen their capital planning processes.

The norms are being implemented to mitigate concerns on potential stresses on asset quality and consequential impact on performance and profitability of banks.

Being implemented in phases since April 1, 2013, Basel-III standards are expected to be fully in place in India by March 2019.

Shares of State Bank of Travancore were trading 1.25 per cent higher at Rs 565 apiece on BSE.