The largest public lender SBI (State bank of India), shares gave on no reaction on company's announcement of capital raising of Rs 50,000 crore via bonds. The stock was trading around Rs 842.50 per share on the bourses.
The SBI stock hit the opening bell at Rs 838.50 per share on the NSE (National Stock Exchange), before touching the day high level of Rs 842.50 per shar on the Indian bourses.
The shares were trading around Rs 838.80 per share with a very tiny decline of 0.071 per cent amounting to Rs 0.60 per share on the NSE (National Stock Exchange).
SBI's domestic bonds totalling Rs 50,000 crore
In FY25, State Bank of India (SBI) issued domestic bonds totaling Rs 50,000 crore. The largest lender in the nation stated in a regulatory filing that this includes Rs 5,000 crore from AT1 Bonds, Rs 15,000 crore from Tier 2 Bonds, and Rs 30,000 crore from Long-Term Bonds.
Subscription for the bonds
Demand for the bond issues more than doubled the size of the base issue, according to SBI, which was an overwhelming response. Banks, insurance companies, mutual funds, provident funds, and pension funds were among the investors.
Rating and tenure of the bonds
While Tier 2 and Long-Term Bonds are rated AAA with a stable outlook, AT1 Bonds are rated AA+ with a stable outlook. With the exception of the AT1 Bonds, which are perpetual, all bonds have a 15-year term. After ten years or on any subsequent anniversary, the AT1 and Tier 2 Bonds have a call option.
Co-lending arrangement with muthooth microfin
Separately, the Kochi-based microfinance organization Muthoot Microfin has begun disbursing loans under its recently formed co-lending arrangement with the State Bank of India (SBI).
SBI has approved a Rs 500 crore limit for this partnership, which will be paid out in Rs 100 crore installments.
For qualified clients, loans in the range of Rs 50,000 to Rs 3 lakh will be made available.
