State Bank of Travancore to raise Rs 600 cr via bonds

SBI associate State Bank of Travancore (SBT) plans to raise up to Rs 600 crore by issuing Basel III-compliant bonds to augment its tier-I capital.

SBT said the Executive Committee of the bank's board of directors will meet on Saturday to decide on the same.

"The Executive Committee is scheduled to meet on February 18 to consider and approve raising of up to Rs 600 crore by way of issue of Basel III compliant perpetual bonds under additional tier-I category of capital," the bank said in a regulatory filing.

A security instrument with fixed income, perpetual bonds have no maturity date and are not redeemable, so they may be treated as equity, not debt.

Shares of SBT closed flat at Rs 565.10 on BSE.

(This article has not been edited by DNA's editorial team and is auto-generated from an agency feed.)