State Bank of India on Friday received board approval to raise up to Rs 50,000 crore through debt instruments in the current financial year.
The instruments could be long-term bonds, Basel-III compliant additional tier-1 bonds, or Basel-III compliant tier-2 bonds.
The bank has received consent to issue bonds through the private placement mode to Indian and/or overseas investors during FY24, subject to the government approval, whenever required.
As of March end, the bank’s capital adequacy ratio stood at 14.68%, compared to 13.83% a year ago.
“With healthy profits in FY23, the capital position of the bank remains comfortable to tap future growth opportunities,” SBI chairman Dinesh Khara said in the annual report.
Healthy internal accruals reinforces its ability to tap capital markets, if warranted, in future, the bank said.
Therefore, SBI believes it is comfortably placed in terms of growth capital in the current year.