JOIN USBriefing reporters, Chairman O P Bhatt said “the bank will be in need of growth capital all the time. So if the product is successful we may come out with such offering every quarter or even every month (if necessary).” He said retail bonds on regular basis will help the bank to take care of its growth capital.
To begin with, SBI will launch Rs 1,000 crore retail bond issue on October 18, as part of bank’s Tier II offering that comprises an issue of Rs 500 crore with an option to retain over-subscription up to Rs 500 crore for issuance of additional bonds. “This bond issue comes as a part of our Tier II offerings and to some extent it will help the bank meet its capital requirements. It will also increase our ability to raise long-term resources,” Bhatt said.
SBI has plans to raise Rs 20,000 crore through right issue.