Five commercial banks have raised Rs 40,895 crore during the April to November period this year. This amount is almost double the amount raised through infrastructure bonds in the entire last financial year (FY 2023). The country’s largest lender, State Bank of India, accounts for almost half of the total amount raised through infrastructure bonds in the first eight months of the current financial year.
Ajay Mangalunia, managing director and head of investment grade group at JM Financial, said the demand for loans from infra has pushed banks to issue infrastructure bonds. Long term sovereign paper bonds have also been better this year compared to last year. This time, public sector banks like State Bank of India, Canara (10 thousand crores) and Bank of Baroda (5 thousand crores) raised more money. His stake in raising infra bond funds was 88 percent. Two private lenders, ICICI Bank and Kotak Mahindra Bank, also raised Rs 4,000 crore and Rs 1,895 crore respectively.
The bank raised Rs 24,976 crore through additional tier 1 (AT1 bonds) and tier 2 bonds to issue debt capital in April-November. Banks raised Rs 6,101 crore from AT1 bonds. State Bank of India raised Rs 3,000 crore and Punjab National Bank raised Rs 3,101 crore through AT1 bonds. The capital raised through Tier 2 bonds was three times that of AT1 bonds. Eight banks raised Rs 18,875 crore through Tier 2 bonds.
Commercial Bank Infrastructure Bond SBI JM Financial Investment Ajay Mangalunia Bank of Baroda
