SBI to raise Rs 500 crore via retail bonds

State Bank of India plans to tap retail investors via a bond issue . The executive committee of the bank's board accorded approval for raising Tier II capital by way of public issue of lower Tier II bonds for Rs 500 crore with an option to retain 100% oversubscription. Although other banks like IDBI and ICICI regularly tapped retail investors through the 1990s and early 2000 via deep-discount bonds, SBI have not tapped retail investors as deposits were easy to come, say analysts.SBI may make the bond issue in October which could be of 10-15 years tenure.(BL 08092010)