<h1>State Bank of India Raises ₹4,691 Crore in Basel III Compliant Additional Tier 1 Bond Issuance</h1>
State Bank of India (SBI), one of the country's largest lenders, successfully raised a significant amount through its first Basel III compliant Additional Tier 1 bond issuance for the current financial year. The bank accepted an issue size of ₹4,691 crore at a coupon rate of 7.75%.
The bonds are structured as perpetual instruments with a call option available after five years and on each subsequent anniversary date. These long-term securities carry an AA+ rating with a stable outlook, provided by both CRISIL Ratings Limited and CARE Ratings Limited.
This issuance is described as a critical step for the bank to diversify its capital base and raise essential long term non-equity regulatory capital.
The market response to the bond issue was robust, indicating strong institutional confidence in SBI. The total number of bids received stood at 89, with the investor responses exceeding two times the original base issue size of ₹3,000 crore.
A diverse group of financial entities participated in the bidding process, including various provident funds, pension funds, mutual funds, and banks. Shri C S Setty, Chairman of SBI, commented that the widespread participation and the heterogeneity of the bids confirmed the trust investors place in India's largest bank.
SBIN Stock Price Movement
As of 1:50 PM, shares of State Bank of India are edging higher to ₹1014.1, gaining 0.09% in live trading. This modest gain comes amid active market participation, with over 2.5 million shares trading today.Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
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