SBI plans to mop up Rs 5,000-crore debt capital via tier-II bonds

SBI's capital and operating buffers are likely to be adequate to cover credit costs through FY19-FY20 and support its medium-term growth plans

State Bank of India (SBI), the country’s largest lender, plans to raise up to Rs 5,000 crore in debt to shore up capital adequacy and support business growth.

The bank will issue Basel III compliant tier-II bonds to raise debt capital. 

India Ratings has assigned ‘AAA’ rating with stable outlook to the proposed bond offering. 

SBI remains a better capitalised public sector bank compared to its peers, with a common equity tier-1 (CET1) ratio of 9.62 per cent in FY19 (against 9.68 per cent in FY18). The tier-II capital was 2.07 per cent at end of March 2019 against 2.23 per cent in