MUMBAI: Country’s largest lender State Bank of India (SBI) on Tuesday received approval from its board to raise up to Rs 10,000 crore during the current quarter funds through the issue of infrastructure bonds.
“The Executive Committee of the Central Board of the bank at its meeting held today i.e., 3.01.2023, inter alia accorded approval for raising infrastructure bonds during FY23 as under: Raising Infrastructure bonds up to amount of Rs 10,000 crore through a public issue or private placement, during FY23,” said SBI in a regulatory filing to the BSE.
The largest lender in terms of asset size, deposits and customer base will utilise the proceeds to meet its credit demand. This is the second time SBI will issue infrastructure bonds. In December last year, the public sector lender raised Rs 10,000 crore through its maiden infrastructure bond issuance at a coupon rate of 7.51 percent, which was the largest single infrastructure bond issued by any lender in the country.
The bank said that it would use the proceeds of the fund for infrastructure projects and to lend to the affordable housing segment. Earlier in September 2022, SBI had raised Rs 4,000 crore by issuing bonds at a coupon rate of 7.57%. The funds were raised by issuing Basel III compliant tier II bonds. Under the Basel-III capital regulations, banks globally need to improve and strengthen their capital planning processes.
RBI nod to SBI MF for Equitas stake
MUMBAI The Reserve Bank of India on Tuesday gave its approval to SBI Funds Management (SBIFM) to acquire up to 9.99% stake in Equitas Small Finance Bank through the schemes of SBI Mutual Fund. “We would like to inform you that the bank has received an intimation from RBI on January 3 according approval to SBI Funds Management to acquire up to 9.99 per cent of the paid-up equity capital of the bank through the schemes of SBI Mutual Fund,” said Equitas Small Finance Bank in regulatory filing to the BSE, on Tuesday. The approval by the central bank is subject to compliance with the relevant regulations issued by RBI and SEBI and is valid for one year till January 2, 2024.