SBI to Part Redeem Tier II Bonds on Lower Yield
State Bank of India (SBI) is redeeming a part of the lower tier II bonds it had issued in February 2011 before maturity. The state-run bank has exercised call option on bonds it raised as part of the .₹ 2,000-crore bond programme. In an intimation issued to bondholders, SBI informed the redemption and interest amount will be credited to the subscriber’s bank account. According to experts, SBI decided to redeem these bonds as the 10-year yield, which is now hovering around 7.46%, is significantly lower than the coupon rate it offered to investors in 2011.