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SBM Bank (India) has raised ₹99 crore from Life Insurance Corporation of India, through the issue of tier-II bonds on January 24, the lender said in a release. The bonds have a maturity of 10 years with a call option at the end of five years.
“Its (LIC’s) decision to subscribe to the entire tranche of our bonds shows its faith in the bank’s overall ability to perform in a tight-leash private banking space. The funds will definitely help us in our business expansion plans and allow us to capture the emerging growth opportunities in the country,” said Mandar Pitale, Head-Treasury, SBM Bank India.
This is the second tranche of tier-II bond issues by the bank, which had earlier raised ₹125 crore in its maiden such issue in April 2022 at a rate of 9.75 per cent. With this fresh round, SBM Bank India has now cumulatively raised ₹224 crore via tier-II bonds.
SBM Bank India, the wholly-owned subsidiary of Mauritius-based SBM Group, last year also raised ₹300 crore from the National Bank for Agriculture and Rural Development (NABARD) under the automatic refinance facility.
The bank has a network of 12 branches across the country, including the recently opened branch in Kolkata. It has been innovating and expanding its service proposition to include an extensive suite of retail and wholesale banking products and capital markets.
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