New Delhi, Dec 24: Country’s largest lender State Bank of India (SBI) today said it has raised Rs 4,000 crore by issuing tier-II bonds on private placement basis under the Basel-III norms. Also Read - SBI Home Loan Gets Cheaper As Bank Reduces Interest Rates, Waives Processing Fee Till March 31

“The bank on December 23, 2015 issued 40,000 Basel-III compliant tier-ll bonds in the nature of debentures of face value of Rs 10,00,000 each at par with 10-year tenure, bearing 8.33 per cent per annum coupon and with call option after 5 years, aggregating to Rs 4,000 crore on private placement basis,” SBI said in a filing to the BSE. However, State Bank of India did not elaborate on the usage of proceeds. The PSU lender on Monday had said it was planning to raise up to Rs 12,000 crore by issuing tier-II bonds on private placement basis. The Committee of Directors’ authorised the bank to raise up to Rs 12,000 crore by way of “issue of Basel-III compliant tier-II bonds, at par, through private placement,” it had said. (ALSO READ: SBI welcomes new base rate calculation methodology) Also Read - SBI to Conduct Mega Property E-auction on 5th March. Here's All You Need to Know & Participate

According to a Fitch Ratings report, Indian banks need USD 140 billion capital to ensure full compliance with the Basel-III norms by 2018-19. The Basel-III norms are aimed at bolstering banks’ resilience. Basel-III capital regulations are being implemented in India with effect from April 1, 2013 in a phased manner. Shares of SBI were trading at Rs 228.95 apiece on the BSE, down 0.41 per cent from its previous close. Also Read - RBI Recruitment 2021: 841 Vacancies for Across India, Apply Online At, Check Date, Time And Other Details