The approval is to raise funds via tier-II and additional tier-I bonds to domestic investors during the current financial year, according to the bank’s exchange filing.
SBI had raised a total of Rs 15,000 crore through tier-II bonds and Rs 5,000 crore through additional tier-I bonds in the previous financial year. Tier-II bonds were raised in two tranches at 7.42% and 7.33%. Additional-tier I bonds were priced at 7.98% in October last year.
The board meeting comes at a time when the bank is also planning to tap the equity market to raise capital. The bank plans to raise Rs25,000 crore through qualified institutional placement of shares. This could be the country’s largest QIP if it is fully subscribed.
The bank’s CET-1 capital stood at 10.81% at the end of March, higher than the minimum regulatory requirement, while overall capital adequacy ratio was at 14.25%.
