SBI bond issue oversubscribed over 4 times on fourth day

State Bank of India's (SBI) Rs 2,000-crore bond has been oversubscribed more than 4 times by investors on the fourth day of the issue.

SBI has received subscriptions of about Rs 9,000-crore for the bond issue, of which retail investor demand is worth about Rs 3,897 crore, sources said. Chairman O P Bhatt on Wednesday he expected total subscriptions to touch Rs 10,000-crore by February 28, when the issue closes.

"We have decided to come out with one such issue every quarter. We will increase the branches from next quarter onwards," he had said.

Available in two options, Series 3 bonds have a tenor of 10 years with a call option by SBI after five years and a coupon rate of 9.75 per cent per annum for retail and 9.30 per cent for non-retail applicants.

The other, Series 4 bonds have a tenor of 15 years and a coupon rate of 9.95 per cent for retail and 9.45 per cent for non-retail investors.

These bonds are distributed through 126 branches spanning 79 centres and will be open to only those with demat accounts.

The issue opened on February 21.

SBI's Rs 1,000-crore maiden retail bond issue last October was oversubscribed 19 times. It had offered 9.25 per cent on a 10-year bond and 9.5 per cent on a 15-year instrument.