NEWS
SBI to consider raising Rs 10,000 cr via infra bonds
The fundraising step may be seen as a move by banks to issue securities, including infrastructure bonds, to meet rising credit demand and lock in funds at cheaper rates.
The fundraising step may be seen as a move by banks to issue securities, including infrastructure bonds, to meet rising credit demand and lock in funds at cheaper rates.
State Bank of India (SBI) will consider raising funds by issuing up to Rs 10,000 crore of infrastructure bonds. This will also include a greenshoe option of Rs 5,000 crore, the country’s largest lender said in a regulatory filing.
The fundraising, if approved, would be through a public issue or private placement during fiscal 2023, SBI said.
The executive committee of the central board of the bank will meet on 29 November to consider the fundraising.
The fundraising step may be seen as a move by banks to issue securities, including infrastructure bonds, to meet rising credit demand and lock in funds at cheaper rates.
As per RBI data, bank credit growth was 17% year-on-year in the 14 days ended 4 November while deposit growth stood at 8.25%.
