The board of State Bank of India on Wednesday approved a proposal to raise upto Rs 11,100 crore through perpetual debt. Anshula Kant, Deputy Managing Director and Chief Financial Officer at SBI said that the bank has been working on different ways to raise capital. The bank has strong capital adequacy at the moment and won't require any capital in the year, she told CNBC-TV18, adding that the decision on timeframe of the debt-raising will depend on market appetite. Commenting on the development, Siddharth Purohit of Angel Broking said that SBI is gearing for capital raising and when loan growth picks ups it'll need tier 1 and tier 2 capital. this will help the bank meet additional capital merger. This is an indication that the management is gearing for incremental loan growth in coming quarters, he said. He said he expects the bank to clock a 12-13 percent standalone growth in FY17, but FY18 will be better. SBI on Wednesday informed the BSE that "the Committee of Directors for Capital Raising at its meeting held on August 24, 2016 authorised the bank to raise up to Rs 11,100 crore additional tier 1 capital, by way of issue of Basel III compliant perpetual debt instrument in USD and/or INR, at par, through private placement to overseas and/or Indian investors".
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