The SBI committee of directors of capital raising has approved to raise Rs 5,000 crore via debt instruments in the current financial year. The SBI central board decided to allot 50,000 Basel III compliant non-convertible, taxable redeemable, subordinated, unsecured, fully paid-up debt instruments of the face value of Rs 10 lakh each, the lender informed the stock exchanges. "The debt instruments have been approved to bond subscribers at 5.83 per cent per annum aggregating to Rs 5,000 crore," it said.
The interest on bonds is payable annually for a period of 10 years with a call option after 5 years and on anniversary date thereafter, SBI said in a statement. The bond issuer can use the call option to call back bonds before the maturity date by paying the principal amount to investors. The Basel-III capital regulations are globally accepted banking norms under which banks need to improve and strengthen their capital planning processes.
Basel-III norms have been implemented in phases since 2013 by Indian banks to mitigate concerns on potential stress on asset quality and consequential impact on performance and profitability of banks. SBI last week also announced the concession of up to 25 basis points (bps) on its home loan rates. With this, SBI's customers would get an interest concession of 25 bps on a home loan of above Rs 75 lakh, based on their CIBIL score and if they are applying through YONO, the lender's digital lending platform.
In an extension of its festive offers announced recently, the bank is offering a credit score-based concession of up to 20 bps from 10 bps earlier, for a home loan of above Rs 30 lakh to Rs 2 crore across the country, a release said. Meanwhile, the SBI opened 1.1 per cent or 2.35 percent lower at 194.25 per cent on the National Stock Exchange.