SBM Bank India, a wholly-owned subsidiary of State Bank of Mauritius, announced on Tuesday that it had raised Rs 125 crore from bonds sales.
The bank raised money by issuing Basel-III compliant Tier-II bonds having a maturity period of 10 years, it said in a statement.
Additionally, it also raised Rs 300 crore through an automatic refinance facility of the National Bank for Agriculture and Rural Development (NABARD), it said.
SBM Bank India is leveraging on its position as a universal bank to tie up with fintech firms for extending services, which helps it with fees income and data mining, it said.
“We believe India’s story has transformed into an attractive opportunity in a post-pandemic world. The bank has registered robust growth in the first three years of operations with highly efficient capital usage.
We at SBM Bank India are now scaling up our vision and operations to transform the banking experience through technology, product proposition and talent,” the bank’s chief executive Sidharth Rath said.
The Tier-II bonds come with a call option at the end of the fifth year and have been rated as ‘A+’ with a stable outlook by domestic rating agency Icra NSE -0.31 %.
The bank statement said the automatic refinance facility was provided considering the existing portfolio of indirect finance to small borrowers in rural areas.
According to Dipak Agarwal, head of corporate banking in SBM Bank India, the fundraising will encourage the bank to lend more in rural areas.