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.