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SBM Bank India successfully closes its maiden Tier–II issuance for raising capital in the domestic market

Raises Rs. 125 crore through Basel III compliant Tier–II bonds with a 10-year maturity

Also raises Rs. 300 crore from NABARD, under Automatic Refinance Facility – opening doors for raising long term funds

Mumbai, 19 April 2022:  SBM Bank India, a new universal bank under the Wholly Owned Subsidiary (WoS) mode, announced the successful completion of its fundraising initiatives, aiming to propel the expansion plans. The Bank raised Rs. 125 crore through its maiden Tier-II capital Basel-III compliant bonds with a 10-year maturity. In addition, the Bank also raised Rs. 300 crore from NABARD under Automatic Refinance Facility.

The Bonds issued with a call option at the end of the 5th year comes after SBM Bank completed its 3 full year of operations as a full-service Indian bank post commencement of business as a WoS of SBM Group Holdings. SBM Bank India’s Tier-2 bonds have been rated as A+ (Stable) by ICRA. Commenting on the Bond issuance, Mandar Pitale, Head – Treasury, SBM Bank India, said, “This achievement has put the Bank in an elite company of banks that have managed this distinction in the past.”

At the same time, the Bank’s fundraising from NABARD signifies the first such deal made towards raising Long term Funds. The Automatic Refinance Facility was provided considering the existing portfolio of indirect finance to microfinance borrowers in rural areas, which fulfill the objective of NABARD of sustained access to financial services for the unreached poor in rural areas through various microfinance innovations cost-effectively and sustainably. Reacting to the development, Dipak Agarwal, Head – Corporate Banking, SBM Bank India, said, “This deal will encourage the Bank to lend more in rural areas for fulfilling its inclusive finance objective.”

Elaborating on the significance of the initiatives, Sidharth Rath, Managing Director & CEO, SBM Bank India, 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. We would continue to utilise our resources judiciously, further improving our benchmarks. Our fundraise highlights our confidence in the opportunity landscape and the strengths we have developed and perfected in the past three years.”

About SBM Bank (India) Ltd

SBM Bank (India) Limited “SBM Bank India” is the first bank to receive a universal banking license from the Reserve Bank of India to set up and operate as a Scheduled Commercial Bank under Wholly Owned Subsidiary (WOS) mode offering banking services in India. SBM Bank India has a network of 11 branches spread across the country including the recently opened new branches in Chandigarh, Pune and Abitghar. SBM Bank India has profound domain expertise and is led by a core team comprising industry veterans having over a century of cumulative experience in banking and financial services. The Bank offers a diverse suite of universal products and services to its customers, including Deposits, Advances, NRI Services, Treasury Products, and Trade Finance Services. SBM Bank India stands poised to embark on a new journey, innovating in every sphere of its business and expanding its service proposition to include an extensive suite of retail and wholesale banking products and capital markets.

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