SBI has got approval to raise funds.
Public offer or private placement will be made for Indian or foreign investors to raise loans from the State Bank of India (SBI). The bank has said that it will raise additional tier-1 (AT-1) capital by issuing a Basel III compliant debt instrument in US dollars or Indian rupees.
New Delhi. State Bank of India (SBI), the country’s largest public sector lender, said its board has approved raising capital through issuance of Bazel III compliant debt of up to Rs 14,000 crore. SBI said in its regulatory filing that its board meeting was held to consider raising capital. The bank said that it will raise additional tier-1 (AT-1) capital by issuing a Basel III compliant debt instrument in US dollars or Indian rupees (Dollar/Rupee).
AT-1 bonds do not have maturity date
Public offer or private placement will be done by SBI for foreign or Indian investors during the financial year 2022. AT-1 bonds are also called perpetual bonds. They do not have any maturity date but have a call option. The issuer of such bonds can call or redeem the bonds after getting the capital at a lower rate. This is often done when interest rates are falling. To comply with the Basel III Capital Regulations, banks around the world need to improve their capital practices.
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At the same time, it has been recently said by State Bank that customers should link their Permanent Account Number (PAN) and Aadhaar (Aadhaar) before 30 June 2021. After this there may be a problem in the transaction. Not only this, the current account will also be affected. Actually, if PAN and Aadhaar are not linked then PAN will become inactive and customers will face problems in transactions. Customers will not be able to withdraw their money. Also, the benefit of government schemes will not be available nor will there be any subsidy. Also, if the PAN card is not linked with Aadhaar, then a maximum penalty of Rs 1,000 will be imposed on you under section 234H.