SBI to consider raising additional tier-1 capital next week

The country's largest lender SBI on Wednesday said its central board will meet next week to consider raising additional tier 1 capital for the current fiscal.

A meeting of the central board of State Bank of India is scheduled to be held on June 21, 2021, to consider raising capital, SBI said in a regulatory filing.

The bank said it plans to raise additional tier-1 (AT-1) capital by way of issuance of Basel III compliant debt instruments in US dollar or Indian rupee through a public offer or private placement to overseas and/or Indian investors during FY22.

AT-1 bonds, also called perpetual bonds, carry no maturity date but have a call option. The issuer of such bonds may call or redeem the bonds if it is getting money at a cheaper rate, especially at a time when interest rates are falling.

Shares of SBI closed 0.83 per cent down at Rs 425.95 apiece on BSE.

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