State Bank of India (SBI), the country's largest lender by assets, said on January 3 that the executive committee of its Central Board has approved a plan to raise funds through the issue of infrastructure bonds worth up to Rs 10,000 crore during the financial year 2023.
The approval was given for “...raising Infrastructure Bonds up to an amount of Rs. 10,000 crores through a public issue or private placement, during FY23,” the bank said in an exchange filing.
On December 29, SBI said that the bank was waiting for regulatory approval to raise the Infrastructure Bonds.
Earlier in December 2022, SBI raised Rs 10,000 crore through its maiden infrastructure bond issue. The amount raised through the bonds is planned to be used to fund long-term infrastructure and affordable housing projects.
On January 1, the Reserve Bank of India (RBI) said that SBI, along with private sector lenders such as ICICI Bank and HDFC Bank, continues to be Domestic Systemically Important Banks (D-SIBs) or institutions which are 'too big to fail'.
SIBs are perceived as banks that are 'too big to fail (TBTF)'. This perception of TBTF creates an expectation of government support for these lenders in times of distress. Due to this, these banks enjoy certain advantages in the funding markets.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
Find the best of Al News in one place, specially curated for you every weekend.
Stay on top of the latest tech trends and biggest startup news.
