Tier I Bonds

On January 20, the Bombay High Court had quashed YES Bank's decision to write off AT-1 bonds in March 2020

Bank intends to raise before Mar23 though approval is till 2024

Analysts cite credit growth surge, better risk profile of tier-2 bonds behind the rush

State Bank of India (SBI) said its board will meet on December 14 to decide on raising capital through Tier I bonds. As per a regulatory filing, SBI said it will seek "approval for raising of Additional Tier 1 (AT 1) capital by way of issuance of Basel III compliant debt instruments in INR and / or any other convertible currency through a public offer or private placement to Indian and / or overseas investors up to March 31, 2024." The fundraise would help the bank grow its loan book. Earlier this week, SBI announced that its personal banking advances, excluding high value home loans, have crossed the Rs 5 lakh crore-mark. The country's largest lender took a year to book the last Rs 1 lakh crore of advances, as against over 15 months for the previous Rs 1 lakh crore and over 30 months for the Rs 1 lakh crore before that. SBI has 22,309 branches, over 65,000 automated teller machines and 66,757 business correspondent outlets, which drive its entire retail banking franchise. Earlie

The Mumbai based lender is likely to come up with another offering of AT1 bonds before the close of the current financial year (FY23)

Public sector lender plans tier I bond of Rs 700 crore before financial year closes

Lender claims overwhelming response from investors, with bids of Rs 9,647 crore; issue oversubscribed 5x against base size of Rs 2,000 crore

The bank had notified an amount of Rs 7,000 crore to be raised through a single tranche of AT-1 bonds in order to augment capital.

While SBI may opt for Rs 4,000-crore tier-II bond sale, Bank of Baroda looks to issue AT-1 bonds worth Rs 3,000-4000 crore in tranches

Last month, SBI's board had provided approval for raising up to Rs 11,000 crore via additional tier-I and tier-II bonds to meet regulatory requirements and support business growth

The lender's board approved raising equity capital up to Rs 3,800 crore, within overall limit of Rs 8,100 crore, said the company in filing with BSE

Ind-Ra said the bank is unlikely to witness a capital erosion in FY22

As of December 31, 2020, total capital adequacy ratio (CAR) stood at 14.06 per cent and tier 1 CAR was at 11.18 per cent

The country's largest lender State Bank of India (SBI) on Wednesday said it has raised Rs 4,000 crore through the issuance of Basel III compliant debt instruments

According to ICRA's estimates, Rs 93,669 crore of AT-I bonds are outstanding as of now

With public sector banks raising Rs 10,000 crore through additional Tier I bonds in the last few weeks, the pressure on the government to provide them with capital support has eased.Rating agency ICRA said although the bonds lessened the government's burden, they were costly at coupon rates of 9-11.5 per cent, significantly higher than yields on senior bonds that trade at 7.5-9 per cent for ratings between AAA and A+ for tenures of 5-10 years.In an earlier round, arrangers had to hold on to these bonds for a longer period than anticipated because of low investor appetite. This time, they have been able to place a sizeable amount with investors.Karthik Srinivasan, senior vice-president, ICRA, Rs 8,100 crore of such bonds had been issued in 2016 and more banks were likely to explore this route. The State Bank of India also raised $300 million (Rs 2,100 crore) through overseas dollar-denominated bonds, taking the overall capital raised through additional Tier I bonds above Rs 10,000 crore