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SBI raises up to Rs 3,105 cr by issuing bonds under Basel-III regulations

To comply with Basel-III capital regulations, banks need to improve and strengthen their capital planning processes

Press Trust of India  |  New Delhi 

SBI, State Bank of India
State Bank of India

The country's largest lender on Friday said it has raised up to Rs 3,105 crore by issuing under the Basel-III regulations.

The committee of directors for capital raising at its meeting on Friday had accorded approval to allot 31,048 non-convertible, taxable, perpetual, subordinated, unsecured Basel-III-compliant for inclusion in additional tier-I capital of the bank, said in a regulatory filing to exchanges.

The debentures bear coupon of 8.75 per cent per annum payable annually with call option after 5 years or any anniversary date thereafter, aggregating to Rs 3,104.80 crore to the bond subscribers on Friday, said.

To comply with Basel-III capital regulations, need to improve and strengthen their capital planning processes.

These norms are being implemented to mitigate concerns on potential stresses on asset quality and consequential impact on performance and profitability of

The Indian banking system has been implementing Basel-III standards in phases since April 1, 2013. The are expected to fully implement these norms by March 2019, however, the Reserve Bank of India has shifted this date further by March 2020.

First Published: Fri, August 30 2019. 18:40 IST