SBI to take a call on overseas funding in November

State Bank of India, the country’s biggest lender, will take a call on raising funds through medium term notes (MTN) in November, its managing director Hemant Contractor told reporters on Friday.

“If the MTN happens, it will be upwards of $500 million,” Contractor said at a press conference.

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Yesterday, the bank’s CFO Diwakar Gupta said State Bank of India would require Rs 7,900 crore to keep its Tier I capital at 8 percent as per RBI guidelines.

“The bank needs Rs 7,900 crore for Tier I capital at 8 percent. Now, the Tier I capital stands at 7.6 per cent,” SBI Managing Director and CFO of SBI Diwakar Gupta said.

He said that infusion of funds by the government would help the bank in raising Tier I (equity) capital.

Moody’s recently downgraded SBI’s standalone rating due to poor Tier I capital ratio and deteriorating asset quality.

Reuters