You are here: Home » Finance » News » Banks
TMB stock ends flat as RBI rejection of proposed chairman has little impact
Business Standard

SBI raises Rs 4,000 crore via tier-2 bonds at cutoff rate of 7.57%

Lender claims overwhelming response from investors, with bids of Rs 9,647 crore; issue oversubscribed 5x against base size of Rs 2,000 crore

Topics
State Bank of India YONO | SBI bonds | Additional Tier 1 bond

BS Reporter  |  Mumbai 



state bank of india, sbi, banks, bank branch

The country’s largest lender, State Bank of India, announced on Wednesday that it has raised an amount of Rs 4,000 crore through tier-2 bonds at a cutoff rate of 7.57 per cent.

“The issue attracted an overwhelming response from investors with bids of Rs 9,647 crore and was oversubscribed by about 5 times against the base issue size of Rs 2,000 crore,” the bank said.

The bonds have a tenure of 15 years with a call option after 10 years, said, adding that the instruments are rated AAA (stable) by credit rating firms.

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 issuing AT-1 bonds at that point 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 tier-II bonds to meet regulatory requirements and support business growth.

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.


We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Wed, September 21 2022. 21:22 IST

RECOMMENDED FOR YOU

.