SBI gets central board’s nod to raise Rs 14,000 cr via bonds

By: |
June 22, 2021 10:12 AM

"The central board of the bank at its meeting held today on June 21, 2021, accorded approval for raising capital by way of issuance of Basel III compliant debt instruments in USD and/or INR during FY22," SBI said in a regulatory filing.

sbi cash withdrawal limitThe scrip of SBI closed 1.64 per cent higher at Rs 419.55 apiece on BSE.

The country’s largest lender SBI on Monday said its central board has approved a proposal to raise up to Rs 14,000 crore by issuing Basel-III compliant bonds.

The bonds are proposed to be raised in Indian or US currency. “The central board of the bank at its meeting held today on June 21, 2021, accorded approval for raising capital by way of issuance of Basel III compliant debt instruments in USD and/or INR during FY22,” SBI said in a regulatory filing.

Under this, the bank plans to raise fresh additional tier I capital up to an amount of Rs 14,000 crore subject to the government of India concurrence, it added.

Tier 1 capital refers to a bank’s core capital. It includes disclosed reserves that are present on a bank’s financial statements and equity capital. A lender uses tier I capital to function on a regular basis and it forms the basis of a financial institution’s strength.

To comply with Basel-III capital regulations, banks globally 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 banks.

The scrip of SBI closed 1.64 per cent higher at Rs 419.55 apiece on BSE.

Get live Stock Prices from BSE, NSE, US Market and latest NAV, portfolio of Mutual Funds, Check out latest IPO News, Best Performing IPOs, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Financial Express is now on Telegram. Click here to join our channel and stay updated with the latest Biz news and updates.

Next Stories
1Sebi mulls measures to improve liquidity in ETFs
2Sebi in process of finalising modalities to set up backstop facility for corp debt market
3Sensex, Nifty scale fresh highs for third day straight; here’s what experts make of today’s trade