SBI raises Rs 4,000 crore through bonds — stock off day's lows

SBI's issue, meanwhile, attracted an overwhelming response from investors with bids of Rs 9,647 crore and was oversubscribed by about 5 times against the base issue size of Rs 2,000 crore. This is an indicator of the trust the investors place in the country’s largest bank, the bank said in a statement.

The bond coupon will be payable annually for a tenor of 15 years with a call option after 10 years and on anniversary dates, thereafter. This represents a spread of 14 bps (basis points) -- one basis points is 100th of a percentage point -- over 10-year Government securities (G-sec), SBI said.

The 10-year SDL (state development loans) cut-off was 7.69 percent annualised on September 20, 2022.

SBI said it has AAA (stable) credit rating from domestic credit rating agencies for these instruments.

Under the Basel-III capital regulations, banks globally need to improve and strengthen their capital planning processes. These norms are implemented to mitigate concerns on potential stresses on asset quality and consequential impact on performance and profitability of banks.