State Bank of India plans to raise Rs 2,000-crore by issuing upper Tier-II bonds to Life Insurance Corp of India (LIC), by the end of this month.
“We plan to raise Rs 2,000 crore from LIC by the end of this month. This is a part of our regular capital-raising programme,” the source close to the development told PTI in Mumbai on Tuesday, on condition of anonymity.
SBI, the country’s largest lender, has plans to raise Rs 18,000-crore worth funds in 1-2 years, out of which it has already raised Rs 4,000 crore, the source said.
“With LIC’s Rs 2,000-crore investment, the bank would be completing Rs 6,000-crore investment in the current fiscal,” the source said, adding the bonds will have a maturity of 15-years and the capital will be used to fund the ongoing business expansion plans of SBI.