SBI, Canara, Bank of Baroda plan to raise Rs 7,500 crore through AT-1 bonds

Banks may be looking to raise funds before rates harden further

Some public-sector banks, including State Bank of India (SBI), the country’s largest lender, are planning to raise around Rs 7,500 crore through additional tier I bonds, sources told Business Standard.

Canara Bank is planning to issue bonds worth Rs 2,000 crore. So is Bank of Baroda, while SBI is likely to rake in Rs 3,000-3,500 crore, sources said.

Indian Overseas Bank too is likely to tap the debt market, sources said, although how much it will raise is not known. “Canara Bank has a requirement; it has taken a rating also. It has some tier-1 call options to be exercised,” a senior