State Bank of India on Friday said it has raised Rs 3,813.60 crore through perpetual bonds to fund its business growth.
The Committee of Directors for Capital Raising today accorded approval for allotment of 38,136 non-convertible, taxable, subordinated, unsecured Basel-III compliant AT1 bonds in the nature of debentures of face value of Rs 10 lakh each, SBI said in a regulatory filing.
It will bear coupon rate of 8.50 percent with call option after 5 years or any anniversary date thereafter, aggregating to Rs 3,813.60 crore to the bond subscribers, it added.
Under the Basel-III norms, AT-1 bonds come with loss absorbency features, meaning that in case of stress, banks can write off such investments or convert them into common equity if approved by the Reserve Bank of India.
AT-1 bonds qualify as core or equity capital.
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