SBI board to meet on Wednesday for tier-I and II capital raising plans

Plans to double registration for its digital-banking app Yono within next six months, from current base of 24 million

State Bank of India will seek the approval of its board, on Wednesday, to raise capital through additional tier-1 (AT1) and tier-II bonds from the markets in FY21.

This capital is expected to strengthen capacity, boost growth, and create a buffer. The state-owned bank is yet to disclose the amount it plans to raise.

It may issue AT1 and Tier-2 capital through the issuance of Basel-III compliant debt instruments — in dollar and domestic currency — during the present financial year.

Analysts said that at present, AT1 bond instruments do not have many takers in the market following YES Bank’s write-down of AT1