+
SBI will raise up to Rs 3 Bn via long-term bonds
ECONOMY & POLICY

SBI will raise up to Rs 3 Bn via long-term bonds

In the current fiscal year, the bank has already declared its intention to raise up to $3 billion in long-term financing from the global market through the private placement and public offering of senior unsecured notes denominated in US dollars or any other significant foreign currency. AAA credit rating with a stable outlook is attributed to the infrastructure bonds that SBI previously issued by domestic credit rating agencies. The regulatory reserve requirements, such as the cash reserve ratio (CRR) and the statutory liquidity ratio (SLR), do not apply to the proceeds from infrastructure bonds. You can use the whole amount for lending activities. Banks would be required to retain 4.5% of the total sum as CRR with the Reserve Bank of India if they were to raise equivalent amounts through deposits. In order to maintain SLR, they must also invest around 18% of their income in securities. SBI stated in its FY24 annual report that the government increased the amount allotted to capital expenditures from Rs 10 trillion in FY24 to Rs 11.11 trillion in the current fiscal year. The National Monetization Pipeline (NMP), Performance-Linked Schemes (PLI), and the National Infrastructure Pipeline (NIP), which has targeted investments of $1.4 trillion, are just a few of the measures the Indian government has launched to boost the economy. New initiatives are driven by the need to build up infrastructure on a large and sustainable scale, particularly in sectors such as renewable energy, roads, and city gas distribution. Investments in India?s key infrastructure sectors?rrenewable energy and roads?and real estate in FY25 and FY26 are pegged to grow about 38% over the previous two financial years to Rs 15 trillion, according to CRISIL Ratings.

In the current fiscal year, the bank has already declared its intention to raise up to $3 billion in long-term financing from the global market through the private placement and public offering of senior unsecured notes denominated in US dollars or any other significant foreign currency. AAA credit rating with a stable outlook is attributed to the infrastructure bonds that SBI previously issued by domestic credit rating agencies. The regulatory reserve requirements, such as the cash reserve ratio (CRR) and the statutory liquidity ratio (SLR), do not apply to the proceeds from infrastructure bonds. You can use the whole amount for lending activities. Banks would be required to retain 4.5% of the total sum as CRR with the Reserve Bank of India if they were to raise equivalent amounts through deposits. In order to maintain SLR, they must also invest around 18% of their income in securities. SBI stated in its FY24 annual report that the government increased the amount allotted to capital expenditures from Rs 10 trillion in FY24 to Rs 11.11 trillion in the current fiscal year. The National Monetization Pipeline (NMP), Performance-Linked Schemes (PLI), and the National Infrastructure Pipeline (NIP), which has targeted investments of $1.4 trillion, are just a few of the measures the Indian government has launched to boost the economy. New initiatives are driven by the need to build up infrastructure on a large and sustainable scale, particularly in sectors such as renewable energy, roads, and city gas distribution. Investments in India?s key infrastructure sectors?rrenewable energy and roads?and real estate in FY25 and FY26 are pegged to grow about 38% over the previous two financial years to Rs 15 trillion, according to CRISIL Ratings.

Next Story
Real Estate

No glass boxes!

India is moving away from the ‘glass box’ syndrome, all-glass façades that were widely used in commercial buildings in the last two decades but came at a significant environmental cost given the country’s predominantly hot and humid climate. Poor thermal performance, excessive heat gain and dependency on mechanical cooling systems made buildings with glass façades energy guzzlers and significantly increased their carbon footprint.That said, it’s important to be aware that “glass is not the enemy,” points out Heena Bhargava, Architect, Architecture Discipline. “How it ..

Next Story
Infrastructure Transport

Why do pavements fail?

India’s highways continue to expand at a healthy pace. But conversations on the surface quality of highways are growing louder because major deficiencies and black spots continue to be identified, and they are cause for concern.“Road surface roughness causes vehicle vibrations that, in turn, can affect the performance of drivers,” explains Dr V K Gahlot, Road Safety Auditor, Centre for Research and Sustainable Development (CfRSD). “Continuous exposure may induce fatigue, a contributory factor to road accidents. Road surface roughness also affects the vehicle operating cost...

Next Story
Infrastructure Urban

APAC Logistics Rents Fall for First Time Since 2020

Logistics rents across the Asia-Pacific region declined 0.4% year-on-year in H1 2025, marking the first annual drop since 2020, according to Knight Frank’s Logistics Highlights H1 2025 report. Despite global trade tensions and cautious occupier sentiment, India emerged as a standout performer, driven by robust manufacturing momentum and supply chain recalibration.Regional Trends and DivergenceWhile rents largely remained stable across most markets, regional differences became more pronounced:Mainland China continued to see rental declines, though the pace of decline moderated to 12.8% YoY, s..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Talk to us?