INSUBCONTINENT EXCLUSIVE:
Kolkata: India’s largest bank State Bank of India said it has received its board’s permission to extend the deadline to
raise Rs
20,000 crore till March next year
The bank may explore follow-on public offer or qualified institutional placement or rights issue for the same while it has raised Rs 1,251
crore in bonds on Friday to boost its additional tier-1 capital ratio.
The bonds SBI allotted to investors are in the nature of
non-convertible and perpetual, and are Basel-lll compliant for inclusion in additional tier-1 capital, the bank said on Friday in a
regulatory filing to the stock exchanges
The bonds carry a coupon of 9.45% payable annually with call option after five years.
SBI, as a systematically important bank, needs to
comply with most stringent capital rules by April 1, Reserve Bank of India said on March 14
The banking regulator said that HDFC Bank and ICICI Bank are also in the category of banks which are too big to fail.
“The additional
common equity tier-1 (CET1) requirement for D-SIBs (domestic systematically important banks) has already been phased-in from April 1, 2016,
and will become fully effective from April 1, 2019,” RBI said on March 14
The additional CET1requirement will be in addition to the capital conservation buffer.
Tier-1 capital is calculated as common equity
Tier-1(CET1) capital plus additional Tier-1 capital (AT1).
