SBI to raise $200 mn overseas

State Bank of India, the country's largest lender, plans to raise $200 million through upper tier-II bonds in the overseas market, a source familiar with the development told Reuters on Thursday.

"The bank is in the process of mandating arrangers for the bond issue," the source said.

The central bank allowed lenders last month to raise capital overseas through hybrid instruments like perpetual and upper tier-II bonds.

In July, State Bank of India Chairman Om Prakash Bhatt said the bank planned to raise Rs 2,500 crore ($538 million) in the financial year to March 2007.