Nation’s largest and biggest Banker and Lender State Bank of India (SBI) plans to raise Rs 20,000 crore through long term bonds to fund affordable housing.
SBI had before proposed to raise Rs 5,000 crore for the reason.
“A proposition will be submitted to Executive Committee of Central Board (ECCB)… for endorsement for issuance of long term bonds of Rs 20,000 crore for financing of infrastructure and affordable housing in domestic and overseas market instead of Rs 5,000 crore intimated earlier,” SBI said in a filing to the stock exchanges.
The bank did not indicate whether the acquiring of funds would be in rupee group or dollar.
The official panel of the focal board is planned to have a gathering on January 17, it included.
Recently, SBI declared plans to raise up to USD 2 billion (over Rs 12,600 crore) by issuing securities in US dollar or other convertible cash more than two fiscals to finance overseas expansion.
It said the massive fund-raising will be planned and executed through a public offer and/or private placement of senior unsecured notes in US dollar or any other convertible currency during 2017-18 and 2018-19.
A month ago, the bank’s board had endorsed raising Rs 8,000 crore through different sources, including masala bonds, to meet Basel III capital standards.
Masala securities are rupee designated particular obligation instruments that can be coasted in abroad markets just to raise capital.
The bank said it has time till March 2018 to raise the funds.
Banks in India need to conform to the worldwide capital standards under Basel III by March 2019. Universally concurred time period for the same is January 2019.