The public sector bank said for AT1 bonds, the bank would raise Rs 4000 crore which would however be subject to the “Government of India (GoI)’s concurrence”. As per the most recent shareholding patterns of the bank, the Government of India currently holds 57.64 % stake in SBI.
SBI will further raise tier-II capital of upto Rs 10000 crore, whilst also redeeming existing tier-II bonds of Rs 11015 crore that have call dates within FY21. The central board of the bank said it would replace these bonds with fresh tier-II capital bonds of the same amount, over and above the Rs 10000 crore it sought to raise.
The public sector bank’s Capital Adequacy Ratio (CAR), as of March 2020, stood at 13.06%, whilst CET1 ratio stood at 9.77%, AT1 ratio at 1.23% and Tier II at 2.06%. SBI said its 9.77% CET1 ratio was well above the regulatory minimum, whilst also adding the lender had “demonstrated ability to comfortably raise 1 capital through various avenues in the past.”
