New Delhi, Nov 24 (PTI) State Bank of India (SBI) on Tuesday said it has raised Rs 2,500 crore from bonds to fund business growth.

The committee of directors for capital raising at its meeting held on Tuesday accorded approval to allot 25,000 Basel-lll compliant non-convertible, taxable, perpetual, subordinated, unsecured, fully paid-up debt instruments in the nature of debentures qualifying as AT 1 capital of the bank to the subscribers, it said in a regulatory filing.

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The bonds of face value of Rs 10 lakh each, at par, bearing a coupon of 7.73 per cent per annum payable annually with call option after five years and on anniversary dates thereafter, aggregates to Rs, 2,500 crore, it said.

Under call option, the bond issuer can call back the bonds before the maturity date by paying back the principal amount to investors.

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The Basel-III capital regulations are globally accepted banking norms under which banks need to improve and strengthen their capital planning processes.

Basel-III norms are being implemented in phases since 2013 by Indian banks to mitigate concerns on potential stress on asset quality and consequential impact on performance and profitability of banks.

Last month, SBI had raised Rs 5,000 crore by issuing Basel-III compliant bonds.

(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)