Active Stocks
Thu Mar 28 2024 15:59:33
  1. Tata Steel share price
  2. 155.90 2.00%
  1. ICICI Bank share price
  2. 1,095.75 1.08%
  1. HDFC Bank share price
  2. 1,448.20 0.52%
  1. ITC share price
  2. 428.55 0.13%
  1. Power Grid Corporation Of India share price
  2. 277.05 2.21%
Business News/ Companies / News/  SBI raises 5,000 cr by issuing Basel-III compliant bonds
BackBack

SBI raises ₹5,000 cr by issuing Basel-III compliant bonds

The interest on the bonds will be paid annually for a tenor of 10 years and call option after 5 years and on anniversary date thereafter, SBI says

State Bank of India (Mint)Premium
State Bank of India (Mint)

New Delhi: The State Bank of India (SBI) on Monday said it has raised 5,000 crore by issuing Basel-III compliant bonds.

The committee of directors of capital raising met on Monday and accorded its approval to allot 50,000 Basel-III compliant non-convertible, taxable debt instruments, SBI said in a regulatory filing.

The debentures qualifying as tier II capital of the bank of face value of 10 lakh each, at par, bearing a coupon of 5.83 per cent aggregating to 5,000 crore were allotted to bond subscribers on October 26, 2020, it said.

The interest on the bonds will be paid annually for a tenor of 10 years and call option after 5 years and on anniversary date thereafter, the country's largest lender said.

Under call option, the bond issuer can call back the bonds before the maturity date by paying back the principal amount to investors.

The Basel-III capital regulations are globally accepted banking norms under which banks need to improve and strengthen their capital planning processes.

Basel-III norms are being implemented in phases since 2013 by Indian banks to mitigate concerns on potential stress on asset quality and consequential impact on performance and profitability of banks.

Shares of SBI on Monday closed 2.96 per cent lower at 196.75 apiece on the BSE. P

Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!

This story has been published from a wire agency feed without modifications to the text. Only the headline has been changed.

Catch all the Corporate news and Updates on Live Mint. Download The Mint News App to get Daily Market Updates & Live Business News.
More Less
Published: 26 Oct 2020, 10:17 PM IST
Next Story footLogo
Recommended For You
Switch to the Mint app for fast and personalized news - Get App

Chat with MintGenie