State Bank Gains Over 2% On Raising Funds Via Bonds

SBI shares gained 1 per cent this morning after India's leading bank announced plans to raise Rs 2,500 crore through bonds to fund its business growth. The shares of SBI touched an intra-day high of Rs 249.30, up 2.2 per cent, on the BSE in early trading on the back of the news announcement. However, at 11:31 am, the shares of SBI had shed most of their intra-day gains and were trading at Rs 245, up 0.47 per cent.

The committee of directors for capital raising at its meeting held on Tuesday approved allocation of 25,000 Basel-lll compliant non-convertible, taxable, perpetual, subordinated, unsecured, fully paid-up debt instruments in the nature of debentures qualifying as AT 1 capital of the bank to subscribers, India's largest bank said in a regulatory filing to the stock exchanges on Tuesday.

The instruments will have a face value of Rs 10 lakh each and carry a coupon rate of 7.73 per cent, the bank added. They will have a call option after five years and on anniversary dates thereafter.

The BSE Sensex had surrendered its intra-day gains and was trading at 44,345.33, lower by 148 points or 0.3 per cent and the NSE Nifty was at 13,014.90, down 38.55 points or 0.30 per cent.