Public sector lender State Bank of India (SBI) on Wednesday said it would raise up to $1.5 billion (more than Rs 10,000 crore) through senior unsecured notes in US dollar or any other convertible currency in FY17.
In a regulatory filing, the country’s largest lender said that the executive committee of its central board has approved “to raise long term funds up to $1,500 million in single / multiple tranches through a public offer and/or private placement of senior unsecured notes in US dollar or any other convertible currency during the financial year 2016-17”.
The Executive Committee of the Central Board in its meeting held on June 29, 2016, has approved “to raise long-term funds up to USD 1,500 million in single/multiple tranches”, SBI said in the filing.
Typically, funds raised in foreign denomination are used to fund overseas operations of a bank.
In February this year, the bank had said that it issued 30,000, Basel III compliant, Tier-ll bonds worth R3,000 crore on private placement basis. “State Bank of India has now informed BSE that the Bank on February 18, 2016 issued 30,000, Basel III compliant, Tier-ll bonds in the nature of debentures, of face value of R10,00,000/- each at par, with 10 year tenure, bearing 8.45% pa coupon and with call option after five years, aggregating to R3,000 crore on private placement basis,” it had said in a regulatory filing.
SBI had reported a net profit of Rs 1,264 crore in the March quarter of FY16, down 66% from a year earlier on the back of higher loan loss provisions.