Ahead of its proposed merger with parent SBI, State Bank of Travancore (SBT) will raise up to Rs 600 crore to shore up additional tier-I capital by issuing Basel compliant bonds on private placement. 

The bank got approval of its Executive Committee today to raise the money, which will be added as its additional tier-I capital.

“The executive committee of the board of directors of the bank at its meeting held on February 18, 2017, has approved the raising of up to Rs 600 crore by way of issue of Basel III compliant additional tier-I bonds by private placement,” SBT said in a regulatory filing.

On Wednesday, the Union Cabinet cleared the proposal to merge the State Bank of India (SBI) with five of its associate banks — three of which are listed and the other two unlisted.

State Bank of Bikaner and Jaipur (SBBJ) and State Bank of Mysore (SBM) apart from SBT, are the three listed entities, while State Bank of Patiala and State Bank of Hyderabad are unlisted.