SBI, Axis, Canara likely to raise Rs 7,500 crore via AT I bonds before 2022

The country's largest lender, SBI, is looking at raising an additional Rs 4,000 crore, Axis Bank Rs 2,000 crore and Canara Bank Rs 1,500 crore

Three commercial banks, including State Bank of India (SBI), Canara Bank and Axis Bank, are likely to raise about Rs 7,500 crore in capital through additional tier I (AT I) bonds before the end of December 2021. They will benefit from being able to raise money at cheaper rates following one notch rating upgrade of the AT I at four public sector lenders on strengthening of their overall credit profile, bond dealers said.

The instruments of Canara Bank and Indian Bank were upgraded from ‘AA’ to ‘AA+’. Punjab National Bank and Union Bank’s bonds were upgraded from ‘AA-’ to ‘AA’. 

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