SBI to raise up to Rs 14,000 cr via AT1 bonds to boost capital adequacy

Being a systemically important financial institution, the bank has to maintain a higher level of CAR than its peers

The country's largest bank, State Bank of India, plans to raise upto Rs 14,000 crore through additional tier-I bonds (AT1 bonds) in current financial year (FY22) to enhance capital adequacy profile.

The Central Board approved the capital raise by way of issuance of Basel lll-compliant debt instruments in rupee and/or US dollar in FY22, bank said in a BSE filing. Its stock closed 1.64 per cent higher at Rs 419.55 per share on BSE.

An SBI executive said this is an enabling provision and the actual issuance will depend on the market conditions and credit growth in the system.