State Bank of India Successfully Raises Rs. 10,000 Crores Through Tier 2 Bonds
- ByStartupStory | November 2, 2023
State Bank of India (SBI), the country’s largest lender, successfully raised Rs. 10,000 crores today through its first Basel III compliant Tier 2 Bond for the current financial year. The bonds, which come with a coupon rate of 7.81%, have a tenor of 15 years, with the first call option becoming available after 10 years.
The overwhelming response from investors was evident, with bids totaling Rs. 15,907 crores, oversubscribing the offering almost 4 times over the base issue size of Rs. 4,000 crores. This robust demand attracted 98 bids, showcasing the high level of investor trust in the nation’s largest bank.
SBI’s Chairman, Shri Dinesh Khara, expressed his satisfaction, stating, “Wider participation and heterogeneity of bids demonstrated the trust investors place in the country’s largest Bank.”
In response to the enthusiastic investor interest, the bank decided to accept Rs. 10,000 crores at a coupon rate of 7.81% payable annually over a 15-year tenor with a call option available after 10 years and on anniversary dates thereafter. This issuance marks the bank’s first Tier 2 Bond offering in the current financial year. Importantly, the bank’s instruments have been rated AAA with a stable outlook by CRISIL and India Ratings & Research Private Limited.
State Bank of India, as the largest commercial bank, boasts an impressive array of achievements, including being the largest mortgage lender in the country. The bank has fulfilled the homeownership dreams of over 30 lakh Indian families, with a home loan portfolio exceeding Rs. 6.53 lakh crore. As of June 2023, the bank’s deposit base stands at over Rs. 45.31 lakh crore, with a CASA ratio of 42.88% and advances exceeding Rs. 33 lakh crore. SBI commands a market share of 33.4% and 19.5% in home loans and auto loans, respectively. The bank’s extensive network includes 22,405 branches and 65,627 ATMs/ADWMs in India, alongside 78,370 BC outlets.
Exciting news! We’re now on WhatsApp Channels too. Subscribe today by clicking the link and stay updated with the latest insights in the startup ecosystem! Click here!
SBI’s digital strategy has proven successful, with 63% of new savings accounts opened through the integrated digital and lifestyle platform YONO in FY23. Notably, YONO has more than 6.36 crore registered users, witnessing over 1 crore average daily logins in Q1 FY24. In the realm of digital lending, the bank disbursed pre-approved personal loans worth Rs. 5,428 crore through YONO during the same period. SBI also boasts the highest number of followers on Facebook and Twitter among all banks worldwide.
Follow Startup Story
Related Posts
