A man walks past reinforcing steel and concrete columns at a construction site. (Photographer: Dhiraj Singh/Bloomberg)

SBI Gets Board Nod To Raise Rs 20,000 Crore For Affordable Housing, Infrastructure

State Bank of India today said its board has given nod to raise Rs 20,000 crore for financing affordable housing and infrastructure projects through long-term bonds.

“The executive committee of the Central Board in its meeting held today has inter alia approved, the proposal for issuance of long term bonds of Rs 20,000 crore for financing of infrastructure and affordable housing in domestic and overseas market in FY 2017-18 and FY 2018-19,” the country's largest bank said in a BSE filing.

The bank did not specify whether the borrowing would be in rupee denomination or foreign currency. Earlier this month, SBI had announced plans to raise up to $2 billion by issuing bonds in the U.S. dollar or other convertible currency to fund overseas expansion.

It had said that the fund-raising would take place through a public offer and/or private placement of senior unsecured notes in U.S. dollar or any other convertible currency during 2017-18 and 2018-19.

Shares of State Bank of India closed 3.44 percent higher at Rs 306.35 apiece on BSE today.

Although the real estate sector is facing multi-year slowdown, the affordable housing segment has gained momentum after the government provided infrastructure to it in the last year's budget.

The government is also providing interest subsidy to buyers on the low cost homes under Pradhan Mantri Awas Yojana.

Recently, HDFC Capital Advisors, an arm of mortgage leader HDFC, closed its second affordable housing fund, creating a $ 1-billion corpus.