Country's largest lender by assets, State Bank of India (SBI), on Tuesday said that its board has considered raising funds through issue of infrastructure bonds worth up to ₹10,000 crore during financial year 2023.
The meeting of the Executive Committee of the Central Board of State Bank of India was scheduled to be held today.
“The Executive Committee of the Central Board to be held on Tuesday, 03rd January, 2023 to consider raising of Infrastructure Bonds up to an amount of ₹10,000 crore," the state-owned bank said in a regulatory filing.
“Raising Infrastructure Bonds up to an amount of Rs. 10,000 crores through a public issue or private placement, during FY23," SBI said.
In December last year, SBI had raised ₹10,000 crore through its maiden infrastructure bond issue.Earlier on Monday, the Reserve Bank of India (RBI) said that SBI, along with private sector lenders such as ICICI Bank and HDFC Bank, continue 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.
The RBI had announced SBI and ICICI Bank as D-SIBs in 2015 and 2016. Based on data collected from banks as on March 31, 2017, HDFC Bank was also classified as a D-SIB.
The current update is based on data collected from banks as on 31 March, 2022.