State Bank of India may sell Rs 4,000 crore tier-2 bond next week

Canara Bank raised Rs 2,000 crore worth of AT1 bonds at a rate of 7.99 per cent, taking its total issuance of such bonds so far in the year to Rs 4,000 crore

The country’s largest lender, State Bank of India, is likely to raise Rs 4,000 crore through issuance of tier-II bonds next week in order to augment capital amid firm credit growth, sources told Business Standard.

The public sector bank had sold additional tier-1 bonds worth Rs 6,872 crore on September 7 at a cutoff rate of 7.75 per cent, the lowest for any bank so far in the current financial year.

In late July, SBI’s board had approved plans to raise up to Rs 11,000 crore via additional tier-I and -II bonds to meet regulatory requirements and support business growth.

Over the past