State Bank of India has plans to raise around Rs 2,000-crore through the issue of upper Tier-II bonds to Life Insurance Corporation of India (LIC) by the end of this month, an SBI source said.
“SBI plan to raise around Rs 2,000-crore from LIC by the end of this month. This is a part of our regular capital-raising programme,” the source told PTI in Mumbai on Wedday.
The bonds will have a maturity of 15-years and the capital will be used to fuel the business expansion plans of SBI, the source said.
Country’s largest lender has plans to raise around Rs 18,000-crore worth funds over a period of 1-2 years, out of which it has already raised Rs 4,000-crore, the source said.
“With the LIC’s Rs 2,000-crore investment, the bank would be completing Rs 6,000-crore investment in the current fiscal,” the source said.