Mumbai: Country’s largest lender State Bank of India (SBI) on March 16 said it had raised Rs. 5,496.9 crore from retail bonds to fund its expansion plans.
The bank has accorded approval for issue and allotment of 731,078 Series 3 Lower Tier-II Bonds of face value Rs. 10,000 each and 4,765,918 Series 4 Lower Tier-II Bonds of face value Rs. 10,000 to the eligible applicants, in the first tranche, SBI said in a filing to the Bombay Stock Exchange .
Together 5,496,996 applicants received bonds worth Rs. 10,000 each and thus raised Rs. 5,496.9 crore, it said.
The issue, which had opened on February 21, closed on February 28. Investors were attracted to the issue because of its competitive coupon rate and the timing, as the end of the fiscal is usually when individuals do tax-saving investments.
This issue is part of the Rs. 10,000-crore retail bond program SBI has planned for FY11 through FY12.