State Bank of India Raises Rs 10,000 Crore Through Infrastructure Bonds
Mumbai (Maharashtra) [India], June 26: State Bank of India (SBI), the country’s largest lender, has successfully raised Rs 10,000 crore at a coupon rate of 7.36% through its fifth infrastructure bond issuance. The bond issue received an overwhelming response from investors, with bids totaling Rs 19,884 crore, nearly four times the base issue size of Rs 5,000 crore.
The bank received 143 bids, indicating wide participation from various investors such as provident funds, pension funds, insurance companies, mutual funds, and corporations. The funds raised will be used to enhance the bank’s long-term resources and invest in infrastructure and affordable housing segments.
SBI has decided to accept Rs 10,000 crore at the annual coupon rate of 7.36%. The bonds have been rated ‘AAA’ with a stable outlook by India Ratings and ICRA. With this issuance, the total outstanding Long-Term Bonds issued by SBI stands at Rs 49,718 crore.
SBI Chairman Shri Dinesh Khara stated, ‘This issuance will help in developing a long-term bond curve and encourage other banks to issue bonds of longer tenor.’
State Bank of India is the largest commercial bank in India in terms of assets, deposits, branches, customers, and employees. It is also the largest mortgage lender in the country, having fulfilled the home-buying dreams of over 30 lakh Indian families. As of March 2024, SBI has a deposit base of over Rs 49.16 lakh crore and advances of more than Rs 37.67 lakh crore, with a market share of 26.5% in home loans and 19.8% in auto loans.
