State Bank of India, India’s biggest lender has come up with bond issues every quarter for mobilising long-term resources. It has planned to spigot retail investors every quarter with bond issues.

SBI in the last quarter has raised Rs 1,000 crore through its retail bonds and is ready to mobilize Rs 10,000 crore through these bonds in the current quarter.

It has been decided by SBI that through this issue it will expand its capital base and has announced that bonds will be offered between, February 21 to 28. This issue is also called Lower Tier II bonds.

In the third quarter its capital adequacy ratio stood at 13.16% and it is expected that it will increase by 100 basis points.

SBI will issue bonds in two categories, one for the tenure of 10 yrs and other will have the tenure of 15 yrs. In the series of 10 yrs bonds, the bank has the opportunity to call the bonds after five yrs and in case of 15 yrs bonds, the bank can call after 10 yrs.

Retail investors investing up to Rs 5 lakh, will get 9.75 per cent on 10-year bonds and 9.95 per cent interest on 15-year bonds.

Whereas the bank offers 9.30 per cent on 10-year bonds and 9.45 per cent, interest on 15-year bonds to the non-retail investors.