INSUBCONTINENT EXCLUSIVE:
20,000 crore till March next year
The bank may explore follow-on public offer or qualified institutional placement or rights issue for the same while it has raised Rs 1,251
crore in bonds on Friday to boost its additional tier-1 capital ratio.
The bonds SBI allotted to investors are in the nature of
non-convertible and perpetual, and are Basel-lll compliant for inclusion in additional tier-1 capital, the bank said on Friday in a
regulatory filing to the stock exchanges
The bonds carry a coupon of 9.45% payable annually with call option after five years.
SBI, as a systematically important bank, needs to
comply with most stringent capital rules by April 1, Reserve Bank of India said on March 14
equity tier-1 (CET1) requirement for D-SIBs (domestic systematically important banks) has already been phased-in from April 1, 2016, and
The additional CET1requirement will be in addition to the capital conservation buffer.
Tier-1 capital is calculated as common equity
Tier-1(CET1) capital plus additional Tier-1 capital (AT1).
