SBI raises Rs 4,000 cr via tier-II bonds

State Bank of India (SBI) has raised Rs 4,000 crore of tier-II capital, said a dealer close to the development.

On Friday, the bank raised Rs 1,000 crore through upper tier-II bonds and Rs 1,000 crore through lower tier-II bonds. The bank had already raised Rs 2,000 crore through upper tier-II bonds last week.

The upper tier-II bonds offer a coupon of 9.15 per cent payable annually, while lower tier-II bonds a coupon of 8.95 per cent annually. A large state-owned insurance company and provident fund have invested in the bond issue.

State Bank of Patiala also raised Rs 150 crore through upper tier-II bonds on Friday. The bonds offer a coupon of 9.15 per cent payable annually and have a call option at the end of the tenth year.