MUMBAI: State Bank of India, India’s biggest lender, plans to raise Rs1,000 crore through a placement of lower Tier-II bonds this week, a banking source said.
The bank plans to sell bonds with a maturity of nine years and three months at a coupon of 9.85%, payable annually, the source said.
“SBI is in talks with Central Board of Trustees, which manages pension funds.
It is also in talks with two banks for raising this amount,” he said.
Last month, SBI raised Rs1,000 crore through the sale of upper Tier-II bonds to state-owned insurer Life Insurance Corporation of India.