State Bank of India plans to raise Rs 10,000 crore worth of infrastructure bonds during the current financial year. SBI confirmed the meeting of the Executive Committee of the Central Board of State Bank of India to seek approval for raising infrastructure bonds to Rs 10,000 crore through public issues or private placement.
SBI Plans to Issue Infrastructure Bonds of Rs 10,000 Crore in 2022-23- Key Points
- The planned insurance worth Rs 10,000 crore includes a greenshoe option of Rs 5,000 crore.
- The infrastructure bonds are likely to be of 10 years tenure according to the plans.
- Infrastructure bonds typically have an edge in such a scenario as the money raised through the issuance of these bonds will be excluded while maintaining a cash reserve ratio (CRR).
- With these, the banks will have more funds to lend.
- According to the RBI norms, long-term bonds with a minimum maturity of seven years raise resources for lending to long-term projects in infrastructure sub-sectors.
About State Bank of India
State Bank of India is an Indian Multinational public sector bank and financial services statutory body headquartered in Mumbai. SBI is the 49th largest bank in the world by total assets and ranked 221st in the Fortune Global 500 list. It is only Indian Bank on the list. The bank was founded on 1st July 1955.