SBI to raise Rs 500 cr debt next week: CFO | india | Hindustan Times
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SBI to raise Rs 500 cr debt next week: CFO

india Updated: Aug 07, 2009 20:48 IST

State-run State Bank of India plans to raise next week Rs 500 crore via perpetual bonds -- an a hybrid instrument which is considered equity but non- redeemable.

The country's largest lender plans to place the money with its subsidiary SBI Pension Fund.

"We plan to raise a perpetual debt of Rs 500 crore at 9.10 per cent sometime next week," SBI Deputy Managing Director and CFO S S Ranjan told reporters here, adding, "We will place it with SBI Pension Fund."

This would not dilute the equity capital but would add to the bank's Tier-I capital, he added. Ranjan said credit off-take for retail and corporate loans was improving.

Besides, the bank was witnessing a strong revival in the home loans segment. "Applications for home loans have gone up. There is a strong demand for affordable housing," Ranjan said.