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India's SBI to consider additional tier-1 capital raise

(Adds details, industry background) BENGALURU, Dec 9 (Reuters) - State Bank of India(SBI.NS) SBIN said on Friday it will consider raisingadditional tier 1 capital by issuing debt in rupees or otherconvertible currency, as the country's largest lender looks tofund growth amid a rebound in demand for loans. A pick up in India's economic activity after a pandemiclull has boosted loan disbursal at lenders, despite interestrates rising since May. India's economy grew at 6.3% inJuly-September and is seen growing by 6.8% this financial year. Credit growth for the industry was around 17%year-on-year as on Nov. 18, central bank data showed . SBI reported a 20% jump in loans in the second quarter. Over the last two weeks, Indian banks raised $2 billionthrough infrastructure bonds, anticipating a revival in privatecapital expenditure and increased government spending. SBIraised about $1.22 billion. [nL4N32Y1UZ] SBI's board will meet on Dec. 14 to consider the capitalraise, which could be through a public offer or a privateplacement, the bank said in an exchange filing . (Reporting by Chris Thomas in Bengaluru; Editing by SavioD'Souza and Dhanya Ann Thoppil) ((chris.thomas@thomsonreuters.com; +91 80 6210 0487;))

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