In Q4, SBI to raise Rs 8,000-cr capital via AT1 bonds

SBI's capital adequacy ratio (CAR) was 13.56 per cent at the end of September 2017, with common equity tier-I at 10.24 per cent and AT1 level of just 0.72 per cent

State Bank of India plans to raise capital worth Rs 8,000 crore through additional tier-I bonds (AT1 bonds) by March 2018.

The board of directors of the country’s largest lender has given a nod to raise additional tier-I capital (AT1) of Rs 8,000 crore through Basel-III-compliant debt instruments, SBI informed the BSE.

The lender has an option to issue bonds, in domestic and international markets in rupee and US dollar, till March 31, 2018. The bank could also issue masala bonds to international investors for raising AT1 capital.

SBI executives said though the bank has comfortable capital adequacy ratio, it would look for