New Delhi: The country’s largest lender State Bank of India (SBI) on Wednesday said its board has approved raising Rs8,000 crore through sources including masala bonds to meet Basel III capital norms.

“The central board at its meeting held today accorded approval to raise additional tier 1 (AT 1) capital by way of issuance of Basel III compliant debt instruments in USD and/or INR to the tune of Rs8,000 crore from domestic/international market including masala bonds," SBI said in a regulatory filing. Masala bonds are rupee denominated specialised debt instruments that can be floated in overseas markets only to raise capital.

SBI said it has time limit till March 2018 to raise the funds.

Banks in India have to comply with the global capital norms under Basel III by March 2019, three months later than the internationally agreed time frame by January 2019. Basel III reforms are the response of Basel Committee on Banking Supervision (BCBS) to improve banking sector’s ability to absorb shocks arising from financial and economic stress.