State Bank of India , the country’s largest lender, said on Thursday it would consider raising funds by issuing up to 100 billion Indian rupees ($1.2 billion) of infrastructure bonds.
The executive committee of the central board of the bank will meet on Nov. 29 to consider the fundraising, which will also include a greenshoe option of 50 billion rupees, the bank said in a stock exchange filing. The fundraising, if approved, would be through a public issue or private placement during fiscal 2023, the bank added.
Analysts said in September that Indian banks might continue their fundraising spree over the next few months by issuing securities including infrastructure bonds as they rush to meet rising credit demand and lock in funds at cheaper rates. Indian banks’ credit growth was 17% year-on-year in the 14 days ended Nov. 4, according to data from the Reserve Bank of India.
($1 = 81.6670 Indian rupees) (Reporting by Rama Venkat and Ashish Chandra in Bengaluru Editing by Jason Neely and Mark Potter)
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)