State Bank of India shelves $1.7 billion fund raising as yields elevated, sources say
MUMBAI (Reuters) -State Bank of India, the country's largest lender by assets, is shelving plans to raise funds this fiscal year, discouraged by elevated bond yields despite a policy rate cut and liquidity boost from the central bank, three sources aware of the matter said on Monday. The bank had planned to raise as much as 150 billion rupees (about $1.7 billion) through sale of bonds before the end of March, but will now tap the market in the next financial year that starts in April, the sources said. "The bank has been waiting for an opportune time to enter the market, but yields have stayed high for the last several weeks, and hence the bank is avoiding tapping the market in the near term," one of the sources said.