Public sector lender State Bank of India (SBI) on Wednesday said it will raise up to `11,100 crore through Basel III compliant debt instruments on a private placement basis.
The country’s biggest bank said in a regulatory filing that “the Committee of Directors for Capital Raising at its meeting held on August 24, 2016 authorised the bank to raise up to `11,100 crore additional tier 1 capital, by way of issue of Basel III compliant perpetual debt instrument in USD and/or INR, at par, through private placement to overseas and/or Indian investors”.
The bank had said in June that it would raise up to $1.5 billion (over `10,000 crore) through senior unsecured notes in US dollar or any other convertible currency in FY17.
In February this year, the bank had said that it issued 30,000, Basel III compliant, Tier-II bonds worth `3,000 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 `10,00,000/- each at par, with 10 year tenure, bearing 8.45% pa coupon and with call option after five years, aggregating to `3,000 crore on private placement basis,” it had said in a regulatory filing.
State Bank of India (SBI) reported a better-than expected set of results for the three months to June. Net profits came in at `2,521 crore, down 32% year-on- year, on the back of higher loan loss provisions which nearly doubled y-o-y to `6,340 crore. India’s largest lender reported a healthy growth in operating profit at `11,054 crore, up 20% y-o-y but the asset quality deteriorated marginally with gross non-performing assets (gnpas), as a share of gross advances, rising 44 bps sequentially to 6.94%.
Shares of SBI on the BSE rose 0.02% on Wednesday and stood at 254.65.