In order to fund infrastructure and affordable housing projects, State Bank of India (SBI) proposes to raise investment through long-term bonds. The country’s largest lender plans to raise Rs 5,000 crore through issuance of bonds.
In order to fund infrastructure and affordable housing projects, State Bank of India (SBI) proposes to raise investment through long-term bonds. The country’s largest lender plans to raise Rs 5,000 crore through issuance of bonds, PTI reported. The proposed bond raising programme aims at funding infrastructure and affordable housing, SBI said in a filing to stock exchanges. The bank will seek board’s approval for issuance of long-term bonds for financing of infrastructure and affordable housing in the domestic and overseas market, PTI reported. The bank, however, did not specify whether the borrowing would be in rupee denomination or dollar. The executive committee of the central board is scheduled to have a meeting on January 17, it added. Yesterday, the bank announced plans to raise up to $2 billion (over Rs 12,600 crore) by issuing bonds in US dollar or other convertible currency over two fiscals to fund overseas expansion. It said the fund-raising will take place through a public offer and/or private placement of senior unsecured notes in US Dollar or any other convertible currency during 2017-18 and 2018-19. Last month, the bank’s board had approved raising Rs 8,000 crore through various sources, including masala bonds, to meet Basel III capital norms.
The State Bank of India had collected whopping Rs 1,771 crore during April-November 2017 as charges from below minimum balance accounts. The charges were slapped on customers who did not maintain their minimum monthly average balance (MAB) in their accounts, according to reports. It has been learnt that the amount is more than the bank’s July-September quarter net profit of Rs 1,581.55 crore and nearly half of the Rs 3,586 crore it earned as net profit from April to September. SBI did not collect any money from the levy of charges for non-maintenance of MAB during the 2016-17 financial year. The charges were re-introduced after a gap of five years during the current fiscal. The bank has a total of 42 crore savings bank accounts of which 13 crore are Basic Savings Bank Deposits Accounts and Pradhan Mantri Jan Dhan Yojana accounts, both categories exempted from levy of such charges.