State Bank of India (SBI) plans to raise Rs 20,000 crore through long-term bonds for affordable housing. The country's largest lender had earlier proposed to raise Rs 5,000 crore for the purpose.
“A proposal will be submitted to executive committee of central board (ECCB)... for approval for issuance of long-term bonds of Rs 20,000 crore for financing of infrastructure and affordable housing in domestic and overseas market instead of Rs 5,000 crore intimated earlier,” SBI said in a filing to the stock exchanges today.
The bank did not specify whether the borrowing would be in rupee denomination or dollar. The executive committee of the central board is scheduled to have a meeting on January 17, it added.
Earlier this week, SBI had announced plans to raise up to $2 billion (over Rs 12,600 crore) by issuing bonds in US dollar or other convertible currency to fund overseas expansion. It said the fund-raising will take place through a public offer and/or private placement of senior unsecured notes in US dollar or any other convertible currency during 2017-18 and 2018-19.
Last month, SBI board had approved raising of Rs 8,000 crore through various sources, including masala bonds, to meet Basel III capital norms. Masala bonds are rupee denominated specialised debt instruments that can be floated in overseas markets only to raise capital. The bank said it has time till March 2018 to raise the funds.
Banks in India have to comply with the global capital norms under Basel III by March 2019. Internationally agreed timeframe for the same is January 2019.