Business

SBI Board To Meet Next Week To Consider Raising Capital Via Bonds

SBI Board To Meet Next Week To Consider Raising Capital Via Bonds

SBI will consider raising capital through bond issue

State Bank of India (SBI), on Friday informed the exchanges that the lender's board will meet on 15 July to consider the prospect of raising capital through bonds. In a filing to the bourses, the country's largest bank said that the board will consider the proposal for Basel-III compliant bonds. The meeting is scheduled "to seek approval for raising of Additional Tier 1 (AT 1) and Tier 2 Capital by way of issuance of Basel lll compliant debt instrument in USD and/or INR during FY 21," the filing stated

The markets however did not react favourably to the announcement. The SBI stock opened on a positive note and went up by 1.70 per cent to a day high of Rs 202.50. However, it witnessed a significant decline and finished 1.73 per cent in the red, with the shares priced at Rs 195.65 apiece at closing.

The broader market too finished with losses as BSE Sensex stood at 36,594.33, down 0.39 per cent, as trading closed for the week.