Mumbai, June 26
State Bank of India (SBI), the country's largest lender, has raised Rs 10,000 crore at a coupon rate of 7.36 per cent through its fifth infrastructure bond issuance.
The issue attracted an overwhelming response from investors with bids in excess of Rs. 19,884 crores and was oversubscribed by around 4 times against the base issue size of Rs. 5,000 crores, as per SBI release.
The bank said that the total number of bids received was 143 indicating wider participation and heterogeneity.
Investors ranging from provident funds, pension funds, insurance companies, mutual funds, and corporations participated in the bond issuance.
The funds raised will be utilised in enhancing long-term resources of the bank, the SBI said adding that investments in infrastructure and affordable housing segments will be made.
The bank has decided, based on the response to accept Rs. 10,000 crores at a coupon rate of 7.36 per cent payable annually.
The instrument is rated AAA with a stable outlook. The bonds have been rated 'AAA' with a stable outlook by India Ratings and ICRA.
With the current issuance, the total outstanding Long-Term Bonds issued by the Bank is at Rs. 49,718 crores, the statement read.
"This issuance will help in developing a long-term bond curve and encourage other banks to issue bonds of longer tenor," said SBI Chairman Shri Dinesh Khara, according to the release.
State Bank of India is the largest commercial bank in terms of assets, deposits, branches, customers, and employees. It is also the largest mortgage lender in the country, which has so far fulfilled the home-buying dreams of over 30 lakh Indian families. The home loan portfolio of the bank has crossed Rs. 7.25 lakh crore.
As of March 2024, the bank has a deposit base of over Rs. 49.16 lakh crore with a CASA ratio of 41.11 per cent and advances of more than Rs. 37.67 lakh crore. SBI commands a market share of 26.5 per cent and 19.8 per cent in home loans and auto loans respectively.