SBI likely to receive Rs 2,000-crore investment from LIC

State Bank of India plans to raise Rs 2,000-crore by issuing upper Tier-II bonds to Life Insurance Corp of India by the end of this month.

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.

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“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.