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State Bank of India’s central board, on Wednesday, accorded its approval for raising about ₹25,000 crore by way of Additional Tier (AT) I capital and Tier II capital.
India’s largest bank, in a stock exchange notice, said it will raise fresh AT I capital of up to ₹4,000 crore, subject to bovernment concurrence.
Further, the bank will be raising fresh Tier 2 capital of up to ₹10,000 crore.
The board has accorded its approval to redeem existing Tier 2 capital bonds of ₹11,015 crore having call dates during FY21 and replace the same by raising fresh Tier 2 capital bonds of the same amount. This fund-raising will be over and above the ₹10,000 crore mentioned earlier.
As of March-end 2020, the bank’s Common Equity Tier (CET) 1 ratio stood at 9.77 per cent in March 2020 (against 9.62 per cent as of March-end 2019), well above regulatory minimum, SBI said in its annual report
The overall capital adequacy ratio of the bank is at 13.06 per cent as on March 2020 against 12.72 per cent as on March 2019.
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