State Bank of India on 1 November announced to have raised ₹10,000 crore at a coupon rate of 7.81 percent through its first Basel III compliant Tier 2 Bond for the current financial year – FY 2023-34. The SBI informed that the bonds are issued for a tenor of 15 years, with the first call option after 10 years. Providing more information, the bank said that its first Basel III compliant Tier 2 Bond attracted an overwhelming response from the investors with bids of ₹15,907 crore and was oversubscribed almost 4 times against the base issue size of ₹4,000 crore with 98 bids.
ALSO READ: SBI Card joins hands with Reliance Retail for the launch of 'Reliance SBI Card'. Details here “Wider participation and heterogeneity of bids demonstrated the trust investors place in the country’s largest Bank," said SBI Chairman Dinesh Khara. He added, "The bank has decided to accept ₹10,000 crore at a coupon rate of 7.81 percent payable annually for a tenor of 15 years with a call option after 10 years and on anniversary dates thereafter." It is to be known that this is the first Tier 2 Bond issuance by the Bank in the current financial year.
The Bank has been rated AAA with a stable outlook from CRISIL and India Ratings & Research Private Limited for these instruments. Meanwhile, on 31 October, SBI Card announced a collaboration with Reliance Retail to roll out Reliance SBI Card. It is set to benefit card-holders while shopping at various Reliance Retail outlets.
As per details, the lifestyle-focused card will offer a range of programs and special advantages to its customers across segments with varied spending needs, right from mass to premium. The card comes in two variants, i.e. Reliance SBI Card, and Reliance SBI Card PRIME."Exciting
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