JOIN USState Bank of India (SBI), leading public sector bank in the country, on Monday decided to raise upto Rs 12,000 through Tier- II bonds.
The committee of directors, duly authorised by the board, in their meeting held on December 21, 2015, inter-alia, authorised the bank to raise upto Rs 12,000 crore.
SBI can raise the money by issueing of Basel III compliant Tier II bonds through private placement, in such number of tranches, at such time as may be considered appropriate and on such coupons as may be decided at time of actual issuance, states SBI in a communique to the exchanges.
SBI had, in a notice to the exchanges on December 16 that a meeting of the committee of directors will be held on December 21 to authorise the chairman to fix the date, time and venue of a meeting of the shareholders.
The meeting will seek approval for one year for raising capital by way of preferential issue/qualified institutional placement/ follow on public offering / rights issue/global depository receipts/american depository receipts and /or any other modes or a combination thereof, as may be approved by the government of India and the RBI.
The number of shares and amount will be decided by the committee of directors for capital raising.
SBI had posted a net profit of Rs 4,991.7 crore for the quarter ended September 30, 2015, compared with Rs 4,023.84 crore for the quarter ended September 30, 2014.
Total income for the bank during the quarter had increased to to Rs 66,585.85 crore compared with Rs 61,098.67 crore in the same period last year.