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State Bank of India on Monday said its Central Board accorded approval to raise AT (Additional Tier) 1 Capital up to an amount of ₹7,000 crore during the current financial year.
This resource raising will be by way of issuance of Basel-III compliant debt instrument in rupees and/or any other convertible currency through a public offer or private placement.
The debt instruments will be issued to overseas and/or Indian investors (Dollar AT 1/ Masala AT 1) in such number of tranche(s), at such time as may be considered appropriate and on such coupon(s), as may be decided at the time of actual issuance during FY20.
The bank,in a stock exchange notice, said it will obtain the government’s concurrence in this regard.
The bank raised AT1 Bonds totalling to ₹7,317 crore in FY19. This was further supplemented by raising of ₹4,116 crore of Tier II bonds.
The combined impact of above efforts saw the capital adequacy position of the bank improving from 12.60 per cent in March last year to 12.72 per cent in March 2019, the bank said in its annual report.
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