MUMBAI: State-run Bank of India has raised Rs 10,000 crore by selling infrastructure bonds, which got huge investor interest as the issue with a base size of Rs 5,000 crore has received bids for Rs 15,305 crore. The bank had raised Rs 10,000 crore last year too.
Given this huge demand, the bank has offered 7.23% annual copoun rate for investors, it said in a statement Tuesday.
The bank got 83 bids worth Rs 15,305 crore but accepted only 37 bids amounting to Rs 10,000 crore, it said, adding the bond sale was carried out through the electronic bidding provider platform of the NSE.
The funds raised through these long-term bonds will be used for funding projects in infrastructure sub-sectors and affordable housing, it added.
Thirteen public and private sector banks have around Rs 2.2 trillion in outstanding infrastructure bonds, while their total infra loan book was around Rs 14 trillion as of March 2025.
Public sector banks are the primary issuers, accounting for a significant around 75% of the total infrastructure loans and 82-85% of bond issuances. Banks issue infra bonds as they are exempt from statutory liquidity ratio and cash reserve ratio requirements, allowing them to fully deploy the capital for lending.
In FY25, State Bank of India had raised Rs 30,000 crore through infrastructure bonds, while Indian Bank had raised Rs 10,000 crore in two installments, Bank of Baroda had mopped up Rs 5,000 crore in this January.