SBI concludes issuance of $1 billion via syndicated social loan

State Bank of India (SBI) on Wednesday, January 3, said it concluded the issuance of $1 billion ($750 million and green shoe of $250 million) through syndicated social loan.  The loan book was closed on January 2, 2024, the lender said in a regulatory filing.

A syndicated loan is a loan offered by a group of lenders (called a syndicate) who work together to provide funds for a single borrower.

Last month, SBI raised interest rates on certain fixed deposits (FDs) by up to 50 basis points or 0.50%. The hike spans various deposit brackets, marking the bank's first significant adjustment in the past ten months.

The rate adjustments target deposits below ₹2 crore.

Notably, SBI has increased rates across various tenures, excluding FDs maturing within one year to less than 2 years, 2 years to less than 3 years, and 5 years to 10 years.

The revised rates entail 50 basis points (bps) rise for deposits maturing in seven days to forty-five days, now fetching 3.50% interest rate. Similarly, for 46 days to 179 days, the bank has raised rates by 25 bps to 4.75% interest.

Fixed deposits ranging from 180 days to 210 days will yield increased interest rate of 5.75% after a 50 bps hike. Meanwhile, the 211 days to less than 1 year tenors will now provide a 6% interest rate following a 25 bps increase.