SBI to raise up to Rs 11,100 crore via debt securities

 State Bank of India (SBI) has decided to raise up to Rs 11,100 crore additional Tier 1 capital through various instruments.

“The committee of directors, at its meeting held on August 24, 2016, authorised the bank to raise up to Rs 11,100 crore additional Tier 1 capital, by way of issue of Base III compliant perpetual debt instrument in US dollars and/or Indian rupees, at par, through private placement to overseas and/or Indian investors, in such number of tranches, at such times, as may be considered appropriate and on such coupons as may be decided at the time of actual issuance,” SBI said in a notice to the exchanges.

The announcement comes at a time when the state-owned bank is in the process of merging its associate banks and Bharatiya Mahila Bank with itself.

The boards of these banks had approved the merger at their respective meetings held on August 18.

Meanwhile, in another development, SBI has said that the bank has been advised by the Indian Banks’ Association (IBA) that AIBEA, AIBOA, BEFI, INBOC and AIBOC have decided to go on strike on September 2.

“All India State Bank Officers’ Federation, the majority association of officers in the bank, is affiliated to AIBOC, which is also a signatory to the strike call and recognised union of workmen in the bank is not affiliated to any of the unions going on strike. In case the strike takes place, it is likely that the bank would also be impacted by the strike,” SBI said.