SBM Bank (India) raised Rs 99 crore from Life Insurance Corporation of India, by issuing Tier II bonds on January 24, the lender said in a statement. The bonds have a 10-year maturity with a call option at the end of five years.
“Their (LIC’s) decision to underwrite the full tranche of our bonds shows their faith in the bank’s overall ability to perform in a constrained private banking space. The funds will definitely help us in our business expansion plans and enable us to capture the emerging growth opportunities in the country,” said Mandar Pitale, Head of Treasury at SBM Bank India.
This is the second tranche of Tier II bond issues by the bank, which had previously raised Rs 125 crore in its first issue in April 2022 at a rate of 9.75 per cent. With this new round, SBM Bank India has now cumulatively raised ₹224 crore through Tier II bonds.
SBM Bank India, the wholly owned subsidiary of Mauritius-based SBM Group, last year also raised ₹300 crore from the National Bank for Agriculture and Rural Development (NABARD) under the automatic refinancing facility.
The bank has a network of 12 branches across the country, including the recently opened branch in Kolkata. It has been innovating and expanding its service proposition to include a broad set of retail and wholesale banking products and capital markets.
